A took a certain sum as loan from bank at a rate of 8% simple interest per annum. A lends the same amount to B at 12% simple interest per annum. If at the end of five years, A made profit of Rs. 800 from the deal, how much was the original sum ?
Let the original sum be Rs. x.
Interest A paid to bank=$$\frac{x\times8\times5}{100}$$.
Interest B paid to A=$$\frac{x\times12\times5}{100}$$.
Therefore, profit made by A=Interest B paid to A-Interest A paid to bank.
$$800=\frac{20x}{100}$$.
$$800=\frac{x}{5}$$.
$$x=4000$$.
Hence, Option B is correct.
Create a FREE account and get:
Day-wise Structured & Planned Preparation Guide
By proceeding you agree to create your account
Free CAT Schedule PDF will be sent to your email address soon !!!
