Question
‘A’ borrowed money at 4% per annum simple interest payable yearly and lent it immediately at 6% per annum compound interest payable half-yearly and gained thereby 209 rupees at the end of a year. What sum of money did he borrow?
Answer: Option A
:
A
Let amount borrowed be Rs. X
Amount to be paid back = Rs. 1.04X
Amount received due to lending at 6% compound interest payable half -yearly = x(1+6200)2=1.0609x
Profit = 1.0609X – 1.04X = 209
0.0209X = 209, X = 10,000; ‘A’ borrowed Rs.10, 000 initially. Option(a)
Alternate Solution
We see that the answer options are far apart and hence the exact calculations are not required. There is an increase of 2% and he is gaining 209 rupees in one year.Hence the amount has to be close to 10000 and hence the answer.
Was this answer helpful ?
:
A
Let amount borrowed be Rs. X
Amount to be paid back = Rs. 1.04X
Amount received due to lending at 6% compound interest payable half -yearly = x(1+6200)2=1.0609x
Profit = 1.0609X – 1.04X = 209
0.0209X = 209, X = 10,000; ‘A’ borrowed Rs.10, 000 initially. Option(a)
Alternate Solution
We see that the answer options are far apart and hence the exact calculations are not required. There is an increase of 2% and he is gaining 209 rupees in one year.Hence the amount has to be close to 10000 and hence the answer.
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution