Multiple choice

A gave some amount at simple rate of interest of 10% p.a to B for 3 years and B gave this amount to C at the rate of 20% p.a for 3 years. If the income of B was Rs. 1560 after 3 years, what amount A had given to B?

  1. Rs. 6200

  2. Rs. 5400

  3. Rs. 5200

  4. Rs. 5600

  5. Rs. 4800
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the amount be P. Interest A pays B = P * 0.1 * 3 = 0.3P. Interest B receives from C = P * 0.2 * 3 = 0.6P. B's income = 0.6P - 0.3P = 0.3P. Given 0.3P = 1560, P = 1560 / 0.3 = 5200.

AI explanation

B earns the difference between the interest rate he charges and the rate he pays, which is 20 percent minus 10 percent, resulting in a 10 percent annual profit. Over 3 years, B earns a total simple interest of 30 percent on the principal amount. Since his total income is Rs. 1560, the principal amount given by A is calculated as 1560 divided by 0.30, which equals Rs. 5200.

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