Question

Rakesh lent out Rs 8000 for 5 years at 15% per annum and borrowed Rs 6000 for 3 years at 12% per annum. How much did he gain or lose?

Answer 1

Principal amount lent out by Rakesh (P) = Rs 8000
Time period (T) = 5 years
Rate of interest (R) = 15% p.a.
Interest = $\frac{P\times R\times T}{100}=\frac{8000\times 15\times 5}{100}$ = Rs 6000

Principal amount borrowed by Rakesh (P) = Rs 6000
Time period (T) = 3 years
Rate of interest (R) = 12% p.a.
Interest = $\frac{P\times R\times T}{100}=\frac{6000\times 12\times 3}{100}$ = Rs 2160

Amount gained by Rakesh = Rs 6000 − Rs 2160 = Rs 3840