Question

Bhavya prepare to lend 8000 for 3 years at rate of 10% but at the time of lending he lends less amount due to which her total gain decreases by 450 Rs. Find the amount he reduced from the initial amount?
1. 1650
2. 1500
3. 1890
4. 1720

Answer 1

Correct Answer - Option 2 : 1500

Given:

Bhavya prepare to lend 8000 for 3 years at rate of 10% but at the time of lending he lends less amount due to which her total gain decreases by 450 Rs.

Formula:

 Amount under simple interest = P × r × t/100

Amount under compound interest = P (1 + r/100) ^t

Calculation:

 Initial income = 8000 × 30/100 = Rs.2400

Less her reduced income = 450

Final interest income = 1950

Amount invested= 1950/30 × 100 = Rs.6500

Reduced investment = 8000 - 6500 = 1500