Question

7. Rakesh lent out Rs 2000 for 5 years at 15% per annum and borrowed Rs 8000 for 3 years
12% per annum. How much did he gain or lose?​

Answer 1

Answer :-

Rakesh lose Rs. 1380. As, his Expense is greater than his Income.

Solution :-

Rakesh's Income:

Principal = Rs 2000

Time = 5 years

Rate Of Interest = 15% p.a.

Simple Interest = $\dfrac{Principal\times Rate\:Of\:Interest\times Times}{100}$

S.I. = $\dfrac{Rs.\:2000\times 15\times 5}{100}$

S.I. = Rs. 1500

Rakesh's Expense:

Principal = Rs 8000

Time = 3 years

Rate Of Interest = 12% p.a.

Simple Interest = $\dfrac{Principal\times Rate\:Of\:Interest\times Times}{100}$

S.I. = $\dfrac{Rs.\:8000\times 12\times 3}{100}$

S.I. = Rs. 2880

As, Rakesh's Expense is greater than his Income. Therefore, it is loss.

His Loss Amount = Rakesh's Expense - Rakesh's Income

His Loss Amount = Rs. 2880 - Rs. 1500 = Rs. 1380.