Question
A man borrowed some money from a private organisation at 5% simple interest per annum. He lended 50% of this money to another person at 10% compound interest per annum and thereby the man made a profit of Rs.3,205 in 4 years. The man borrowed.
Answer: Option D
Answer: (d)Using Rule 1,Sum borrowed = Rs.xSimple interest after 4 years= ${x × 4 × 5}/100$ = Rs.$x/5$Amount lent of on compound interest = Rs.$x/2$C.I. = P$[(1 + R/100)^T - 1]$= $x/2[(1 + 10/100)^4 - 1]$= $x/2[(1.1)^4 - 1]$= $x/2$ (1.4641 - 1) = Rs.${0.4641x}/2$${0.4641x}/2 - x/5$ = 3205${2.3205x - 2x}/10$ = 32050.3205x = 32050$x = 32050/{0.3205}$ = Rs.100000
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Answer: (d)Using Rule 1,Sum borrowed = Rs.xSimple interest after 4 years= ${x × 4 × 5}/100$ = Rs.$x/5$Amount lent of on compound interest = Rs.$x/2$C.I. = P$[(1 + R/100)^T - 1]$= $x/2[(1 + 10/100)^4 - 1]$= $x/2[(1.1)^4 - 1]$= $x/2$ (1.4641 - 1) = Rs.${0.4641x}/2$${0.4641x}/2 - x/5$ = 3205${2.3205x - 2x}/10$ = 32050.3205x = 32050$x = 32050/{0.3205}$ = Rs.100000
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