📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      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