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    Question

    Vikas borrowed Rs. 10,000 from his friend at compound

    interest of 20% p.a., compounding annually. He added Rs. 'Z' to this money and lent the total sum to Mohan at simple interest of 10% p.a. for 2 years. If total profit earned by Vikas at the end of 2 years is Rs. 800, then find the value of 'Z'.
    A 12000 Correct Answer Incorrect Answer
    B 16000 Correct Answer Incorrect Answer
    C 18000 Correct Answer Incorrect Answer
    D 20000 Correct Answer Incorrect Answer
    E 22000 Correct Answer Incorrect Answer

    Solution

    Interest to be paid by Vikas = 10000 × {(1.2)² − 1} = Rs. 4,400 So, interest earned by Vikas = 4400 + 800 = Rs. 5,200 So, 5200 = {(Z + 10000) × 10 × 2} ÷ 100 Or, 52000 = 2Z + 20000 Or, 2Z = 32000 So, Z = 16000

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