Question

20,000 is borrowed for 5 years at 10% rate of interest p.a. Find the interest to be paid at the end of 5 years.​

Answer 1

Answer:

Interest to be paid at the end of 5 yrs is Rs. 10,000

Step-by-step explanation:

Given:

Amount of money borrowed ( P) = Rs.20,000

Time ( t) = 5 yrs.

Rate of interest ( r) = 10 % p.a

Simple interest = ( p × r × t ) /100

                         = ( 20,000 × 10 × 5 ) /100

                        =10,000 Rs.

Answer 2

English

Home Quantitative Aptitude Interest Simple and Compound Both

Question

Prashant borrowed Rs. 20000 at 5% p.a. compound interest for 2 years from Yash. After that, he invests it in a bank which offers 8% p.a. simple interest for 2 years. Find the profit earned by Prashant.

Rs. 1500

Rs. 1,250

Rs. 1,150

Rs. 1,200

None of these

Answer (Detailed Solution Below)

Option 3 : Rs. 1,150

Detailed Solution

GIVEN :

Prashant borrowed Rs. 20000 at 5% p.a. compound interest for 2 years from Yash.

FORMULA USED :

Amount = P(1 + R/100)n

CALCULATION :

Amount to be paid to Yash = P(1 + R/100)n

= 20000(1 + 5/100)2

= 20000 × (441/400)

= Rs. 22,050

Amount received from bank = P(1 +RT/100)

= 20000(1 + 8 × 2/100)

= Rs. 23,200

∴ Overall profit = 23,200 - 22,050

= Rs. 1,150