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- Siddharth wants to borrow Rs.
Question 1:
Siddharth wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years.What would be his income in the above transaction?
A. Rs.21.60
Feedback Amount of money Siddharth borrowed at S.I at 6% p.a. for two years = Rs.6,000
He lend the same amount for C.I at 6% p.a. for two years.
=> Siddharth's income = C.I - S.I
= p[1 + r/ 100]n - p - pnr/100
= p{ [1 + r/ 100]2 - 1 - nr/100
= 6,000{ [1 + 6/100]2 - 1 - 12/100}
= 6,000 {(1.06)2- 1 - 0.12} = 6,000(1.1236 - 1 - 0.12)
= 6,000 (0.0036) = 6 * 3.6 = Rs.21.60
He lend the same amount for C.I at 6% p.a. for two years.
=> Siddharth's income = C.I - S.I
= p[1 + r/ 100]n - p - pnr/100
= p{ [1 + r/ 100]2 - 1 - nr/100
= 6,000{ [1 + 6/100]2 - 1 - 12/100}
= 6,000 {(1.06)2- 1 - 0.12} = 6,000(1.1236 - 1 - 0.12)
= 6,000 (0.0036) = 6 * 3.6 = Rs.21.60
B. Rs.24.00
C. Rs.27.80
D. Rs.25.20
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