Siddharth wants to borrow Rs.5000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I...
Siddharth wants to borrow Rs.5000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?
Answer/Solution
s.18.00
Steps/Work
Amount of money Siddharth borrowed at S.I at 6% p.a. for two years = Rs.5,000
He lend the same amount for C.I at 6% p.a. for two years.
=> Siddharth's income = C.I - S.I
= p[1 + r/ 100]n - p - pnr/100
= p{ [1 + r/ 100]2 - 1 - nr/100
= 5,000{ [1 + 6/100]2 - 1 - 12/100}
= 5,000 {(1.06)2- 1 - 0.12} = 5,000(1.1236 - 1 - 0.12)
= 5,000 (0.0036) = 5 * 3.6 = Rs.18.00
Answer: D
He lend the same amount for C.I at 6% p.a. for two years.
=> Siddharth's income = C.I - S.I
= p[1 + r/ 100]n - p - pnr/100
= p{ [1 + r/ 100]2 - 1 - nr/100
= 5,000{ [1 + 6/100]2 - 1 - 12/100}
= 5,000 {(1.06)2- 1 - 0.12} = 5,000(1.1236 - 1 - 0.12)
= 5,000 (0.0036) = 5 * 3.6 = Rs.18.00
Answer: D