Multiple Choice Questions

A borrows an amount Rs3 600 from B at a rate of 20 simple interest for 2 years and lends 75 of this ...........

Quantitative Aptitude (MTS) Simple Interest

A borrows an amount Rs3,600 from B at a rate of 20% simple interest for 2 years and lends 75% of this amount to C at 20%

compound interest for 2 years. A uses the remaining amount for his personal purpose. Find the total loss incurred by A.

This questions was previously asked in

SSC MTS 12th July 2022 Shift-2

Rs928

Rs852

Rs1,152

Rs1,024

- A borrows Rs3,600 at 20% simple interest for 2 years.

- The interest paid to B = $\frac{3, 600 \times 20 \times 2}{100} = R s 1, 440$ .

- A lends 75% of Rs3,600 to C, which is Rs2,700.

- C is charged 20% compound interest for 2 years.

- The interest from C = $2, 700 \times (1 + \frac{20}{100})^{2} - 2, 700$ .

- This calculates as $2, 700 \times 1.44 = R s 3, 888$ .

- Profit from C = 3,888 - 2,700 = Rs1,188.

- Loss to A = Interest paid (1,440) - Interest from C (1,188).

- Loss = Rs252.

- Correct Answer: Option 2, Rs852

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