Question

A person borrowed Rs 5,500 from a money lender at the rate of 24% per annum simple interest. He lent this amount to his friend at the rate of 36% per annum simple interest. After two years he collected the amount due to the money lender. The amount he thus earned is

• A. Rs 1,250
• B. Rs 1,300
• C. Rs 1,320
• D. Rs 1,350

Answer 1

Answer: (C)

Rs 1,320

The amount earned is the interest on Rs 5,500 for 2 years at (36 -24)% i.e., 12% which amounts to Rs. 1,320.