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

Given Principal amount P = Rs 8000
Time period T = 5 years
Rate of interest R = 15% p.a.
$Weknowthatsimpleinterest=(P\times T\times R)/100$
On substituting these values in above equation we get
$SI=(8000\times 5\times 15)/100=Rs6000$
Principal amount P = 6000
Time period T = 3 years
Rate of interest R = 12%p.a.
$Weknowthatsimpleinterest=(P\times T\times R)/100$
On substituting these values in above equation we get
$SI=(6000\times 3\times 12)/100=Rs2160$
Amount gained by Rakesh = Rs 6000 - Rs 2160 = Rs 3840