Question

Rakesh lent out Rs 8000 for 5 years at 15% per annum and borrowed Rs 6000 for 3 years at 12% per annum. How much did he gain or lose?

Answer 1

Given Principal amount P = Rs 8000

Time period T = 5 years

Rate of interest R = 15% p.a.

We know that simple interest = (P × T × R)/100

On substituting these values in above equation we get

SI = (8000 × 5 × 15)/100

= Rs 6000

Principal amount P = Rs 6000

Time period T = 3 years

Rate of interest R = 12% p.a.

We know that simple interest = (P × T × R)/100

On substituting these values in above equation we get

SI = (6000 × 3 × 12)/100

= Rs 2160

Amount gained by Rakesh = Rs 6000 − Rs 2160

= Rs 3840