Multiple choice

Amit borrowed Rs. 41,000 from his friend Nikhil at 2% per annum simple interest. He lent it to Nikita at the same rate but compounded annually. Find his gain after 3 years.

  1. Rs. 141

  2. Rs. 50

  3. Rs. 460

  4. Rs. 2460
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest = 41000 * 0.02 * 3 = 2460. Compound interest = 41000 * (1.02^3 - 1) = 41000 * (1.061208 - 1) = 41000 * 0.061208 = 2509.528. Gain = 2509.528 - 2460 = 49.528, which rounds to 50.

AI explanation

The simple interest Amit pays is 41000 * 2 * 3 / 100 = 2460. The compound interest he earns is 41000 * ((1 + 2/100)^3 - 1) = 2510.61. His gain after 3 years is the difference between the compound interest he earns and the simple interest he pays, which is 2510.61 - 2460 = 50.61. The closest given choice is Rs. 50.

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