📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Manoj lent Rs. 60,000 to Ajit at compound interest of

    10% p.a. (compounded annually) for 2 years. Ajit returned the amount by calculating simple interest. Find the loss incurred by Manoj.
    A Rs. 600 Correct Answer Incorrect Answer
    B Rs. 800 Correct Answer Incorrect Answer
    C Rs. 1000 Correct Answer Incorrect Answer
    D Rs. 1200 Correct Answer Incorrect Answer
    E Rs. 1500 Correct Answer Incorrect Answer

    Solution

    Amount due at the end of 2 years
    = 60000 × {1 + (10/100)}²
    = 60000 × (1.1)²
    = 60000 × 1.21
    = Rs. 72,600 So, interest due = 72,600 − 60,000 = Rs. 12,600 Simple interest due after two years
    = (60,000 × 10 × 2) ÷ 100
    = Rs. 12,000 So, loss incurred by Manoj
    = 12,600 − 12,000
    = Rs. 600

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question