Question

Pradeep borrows Rs.$65,000$ at $10$% per annum at simple interest for $3$ years and lends it at $10$% per annum compounded annually for $3$ years. Find his gain (in Rs.) after three years.

• A. $2000$
• B. $2015$
• C. $2011$
• D. $1990$

Answer 1

The correct option is B $2015$

P $=65000$ , R $=10\%$ , T $=3$

Pradeep borrows as Simple Interest

SI $=\frac{PRT}{100}$

$⟹\frac{65000\times 10\times 3}{100}=19500$

Pradeep lends as Compound Interest

CI $=P{(1+\frac{R}{100})}^T-P$

$⟹65000{(1+\frac{10}{100})}^3-1=21515$

$\therefore$ Pradeep's gain after $3$ years $=21515-19500$

$=2015$