Question 138

Prabhat took a certain amount as a loan from a bank at the rate of 8% p.a. simple interest and gave the same amount to Ashish as a loan at the rate of 12% p. a. If at the end of 12 years, he made a profit of 960 in the deal, then the original amount was:

Solution

Simple Interest = $$\frac{P \times R \times T}{100}$$

profit made = Rs 960

R (at which loan is taken) = 8%

R(at which it is given to friend ) = 12%

i.e.$$\frac{P \times 12 \times 12}{100} - \frac{P \times 8 \times 12}{100}$$ = 960

P $$\frac{4 \times 12}{100}$$ = 960

P = Rs 2000

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