Question

A man borrowed a certain sum of money from SBI bank at 10% per annum on simple interest for 3 years and he lend to his friend same money for same year at 15% per annum on simple interest. After 3 years he would gain Rs 300, then find how much money he borrowed from bank?
1. Rs 3000
2. Rs 2000
3. Rs 1000
4. Rs 4000

Answer 1

Correct Answer - Option 2 : Rs 2000

Given 

Rate of Interest = 10% per annum 

Time = 3 years 

Profit of Man = Rs 300

Formula Used 

Simple Interest = Principal × time × Rate/100

Calculation

⇒ let the amount he borrowed be x 

⇒ 300 = [(x × 15 × 3)/100] - [(x × 10 × 3)/100]

⇒ 300 = x × 5 × 3/100

⇒ x = 2000

∴ He borrowed Rs 2000 from the SBI bank