Multiple choice

Akash borrows Rs. 65,000 at 10% per annum simple interest for 3 years and lends it at 10% per annum, compound interest for 3 years. Find his gain after three years.

  1. Rs. 2015

  2. Rs.1330

  3. Rs.1300

  4. None of these
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A 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

The simple interest Akash pays is calculated as 65000 multiplied by 10 multiplied by 3 and divided by 100, resulting in Rs. 19500, making his total repayment 65000 plus 19500 which equals Rs. 84500. The compound interest he earns is calculated as 65000 multiplied by 1.1 cubed, which gives a total received of Rs. 86515. The difference between the amount he receives and the amount he repays, 86515 minus 84500, is his gain of Rs. 2015.

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