Question
A man borrowed some money from a private organisation at 5% simple interest per annum. He lended this money to another person at 10% compound interest per annum, and made a profit of Rs.26,410 in 4 years. The man borrowed
Answer: Option A
Answer: (a)Let the principal be Rs.P. For 4 years,S.I. = $\text"Principal × Time × Rate"/100$= ${P × 4 × 5}/100$ = Rs.$P/5$C.I. = P$[(1 + R/100)^T - 1]$= P$[(1 + 10/100)^4 - 1]$= P$[(11/10)^4 - 1]$= P$(14641/10000 - 1) = {4641P}/10000$According to the question,${4641P}/10000 - P/5$ = 26410${4641P - 2000P}/10000$ = 2641${2641P}/10000$ = 2641P = Rs.10000
Was this answer helpful ?
Answer: (a)Let the principal be Rs.P. For 4 years,S.I. = $\text"Principal × Time × Rate"/100$= ${P × 4 × 5}/100$ = Rs.$P/5$C.I. = P$[(1 + R/100)^T - 1]$= P$[(1 + 10/100)^4 - 1]$= P$[(11/10)^4 - 1]$= P$(14641/10000 - 1) = {4641P}/10000$According to the question,${4641P}/10000 - P/5$ = 26410${4641P - 2000P}/10000$ = 2641${2641P}/10000$ = 2641P = Rs.10000
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution