Question

Amita borrowed Rs. 7500 for 3 years at 8% p.a. simple interest. She lent it to Anju at 12% p.a for 3 years. Find her profit after 3 years.

1. Rs. 325
2. Rs. 900
3. Rs. 425
4. Rs. 630

Answer 1

Correct Answer - Option 2 : Rs. 900

Given:

Amita borrowed ( Principal ) = 7500

Rate = 8%

Time = 3 years

She lent it to Anju,

Rate = 12%

Time = 3 years

Concept used:

Simple interest = (Principal × Rate × Time)/100

Calculations:

Simple interest in 3 years

⇒ (7500 × 12 × 3)/100 – (7500 × 8 × 3)/100

⇒ 2700 – 1800 = 900

Profit in 3 years = Rs. 900

∴ The profit is Rs. 900