Question
Aman borrowed Rs. 25,000 from his friend at compound
interest of 10% p.a., compounding annually. He added Rs. 'Y' to this money and lent the total sum to Rohan at simple interest of 10% p.a. for 3 years. If total profit earned by Aman at the end of 3 years is Rs. 1,130, then find the value of 'Y'.Solution
Interest to be paid by Aman = 25000 × {(1.1)³ − 1} = Rs. 8,275 So, interest earned by Aman = 8275 + 1130 = Rs. 9,405 So, 9405 = {(Y + 25000) × 10 × 3} ÷ 100 Or, 94050 = 3Y + 75000 Or, 3Y = 19050 So, Y = 6350
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