Multiple choice

A person has borrowed a sum of money at 9% simple interest and invested the sum at 10% compound interest for 3 years. His profit after 3 years is Rs.1952. How much money had he borrowed?

  1. Rs.30000

  2. Rs.32000

  3. Rs.33000

  4. Rs.32543
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let borrowed amount = P. Simple interest paid = P×0.09×3 = 0.27P. Compound interest earned = P×(1.1³-1) = P×0.331. Profit = 0.331P - 0.27P = 0.061P = 1952. Therefore P = 1952/0.061 ≈ 32000. Option B (Rs.32000) is correct.

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