Multiple choice

Atul borrowed a sum of Rs. 4800 from Rahul at a rate of 9% per annum for 3 years. He added an amount of Rs. 1000 to the borrowed money and lent it to Chandan at the same rate of interest for 3 years compounded annually. After 3 years, what was the gain/loss for Atul?

  1. Rs. 250

  2. Rs. 398

  3. Rs. 415

  4. Rs. 537

  5. Rs. 1415
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Atul borrows 4800 at 9% SI for 3 years: Interest = 4800 * 0.09 * 3 = 1296. Total repayment = 6096. Atul lends 5800 (4800 + 1000) at 9% CI for 3 years: Amount = 5800 * (1.09)^3 = 5800 * 1.295029 = 7511.17. Gain = 7511.17 - 6096 - 1000 = 415.17.

AI explanation

Atul pays simple interest to Rahul on Rs. 4800 at 9% for 3 years, which calculates to 4800 multiplied by 0.09 multiplied by 3, equaling Rs. 1296. He lends a total of Rs. 5800 to Chandan at 9% compound interest for 3 years, earning an interest of 5800 multiplied by the quantity 1.09 cubed minus 1, resulting in Rs. 1711.40. His gain is the difference between the interest he earned and the interest he paid, so Rs. 1711.40 minus Rs. 1296 equals Rs. 415.40, which rounds to a gain of Rs. 415.

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