Discussion
Siddharth wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?
Answer: A
He pays simple interest and receives compound interest on the same sum at the same rate, so his profit is the gap between the two.
\[ \text{SI paid} = 6000 \times 0.06 \times 2 = \text{Rs. } 720 \]
\[ \text{CI received} = 6000\left[(1.06)^{2} - 1\right] = 6000(1.1236 - 1) = \text{Rs. } 741.60 \]
\[ \text{income} = 741.60 - 720 = \text{Rs. } 21.60 \]
The shortcut gives it in one line: \( P\left(\tfrac{R}{100}\right)^{2} = 6000 \times 0.0036 = 21.60 \).
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development