Question

If a bank accepts a deposit of <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> ₹2000 at a rate of 5% p.a. and gives a loan of <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> ₹3000 at a rate of 10% p.a., find the difference between the interests and thus the bank's income over the two principals.

Answer 1

We know that,
$\frac{\mathrm{Interest}}{\mathrm{Principal}}=\frac{\mathrm{Rate}}{100}\Rightarrow \mathrm{Interest}=\frac{\mathrm{Rate}\times \mathrm{Principal}}{100}\mathrm{Therefore},\mathrm{Interest}\mathrm{paid}=\frac{2000\times 5}{100}=₹100\mathrm{Interest}\mathrm{recieved}=\frac{3000\times 10}{100}=₹300$
Difference between the interest = bank's earning
= <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> ₹300 - <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> ₹100 = <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> ₹200