Question

Gokul took a certain amount as a loan from a bank at the rate of 8% simple interest per annum and gave the same amount to Alok as a loan at the rate of 12% simple interest per annum.If at the end of 12 years he made a profit of Rs 480 in the deal .What was the original amount?

Answer 1

The original amount was 1000

Answer 2

Answer:

Original Amount is Rs. 1000

Step-by-step explanation:

Given:

Rate of interest of Gokul  = 8%

Rate of interest of Alok  = 12 %

Time of the loan = 12 years

To find: Original Principal Amount , P

Formula used for Simple Interest,

SI = (PRT)/100

According to the Question,

$\frac{P\times12\times12}{100}-\frac{P\times8\times12}{100}=480$

$\frac{12P}{100}(12-8)=480$

$\frac{12P\times4}{100}=480$

$P=\frac{480\times100}{48}$

$P=1000$

Therefore, Original Amount is Rs. 1000