Practicing Success
A borrows an amount ₹3,600 from B at a rate of 20% simple interest for 2 years and lends 75% of this amount to C at 20% compound interest for 2 years. A uses the remaining amount for his personal purpose. Find the total loss incurred by A. |
₹928 ₹852 ₹1,152 ₹1,024 |
₹1,152 |
Simple interest on sum borrowed by A = \(\frac{P × R × T }{100}\) = \(\frac{3600 × 20 × 2 }{100}\) = 1440 Sum lent to C = 75% of 3600 = \(\frac{3 }{4}\) × 3600 = 2700 Compound interest on sum lent to C , C.I = P(1+$\frac{R}{100})^t$– P = 2700 [ 1 + \(\frac{20 }{100}\) ]² - 2700 = 2700 × \(\frac{6 }{5}\) × \(\frac{6 }{5}\) - 2700 = 2700 [ \(\frac{11 }{25}\) ] = Rs. 1188 Total loss of A = 1440 - 1188 + 25% of 3600 = 252 + \(\frac{1 }{4}\) × 900 = Rs. 1152
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