Question

Rohit borrowed Rs 600000 from a bank at 9% per annum for 2 years. He lent this sum of money to Rohan at 10% per annum for 2 years. How much did Rohit earn from this transaction?

Answer 1

Given Principal amount P = Rs 60000

Time period T = 2 years

Rate of interest R = 10% p.a.

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

On substituting these values in above equation we get

SI = (60000 × 2 × 10)/100

= Rs 12000

Principal amount P = Rs 60000

Time period T = 2 years

Rate of interest R = 9% p.a.

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

On substituting these values in above equation we get

SI = (60000 × 2 × 9)/100

= Rs 10800

Amount gained by Rohit = Rs 12000 − Rs 10800

= Rs 1200