Multiple choice

Pradeep borrows Rs.$ 65,000$ at $10$% per annum at simple interest for $3$ years and lends it at $10$% per annum compounded annually for $3$ years. Find his gain (in Rs.) after three years.

  1. $2000$
  2. $2015$
  3. $2011$
  4. $1990$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest = 65000 * 0.1 * 3 = 19500. Compound interest = 65000 * (1.1^3 - 1) = 65000 * (1.331 - 1) = 65000 * 0.331 = 21515. Gain = 21515 - 19500 = 2015.

AI explanation

Using the simple interest formula, the interest Pradeep pays is (65000 * 10 * 3) / 100 = 19500. Using the compound interest formula, the amount he receives is 65000 * (1 + 10/100)^3 = 65000 * 1.331 = 86515, giving a total interest of 21515. His gain after three years is the difference between the two interests, which is 21515 - 19500 = 2015.

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