Railways Exam  >  Railways Questions  >   Nidhi borrowed Rs. 10000 from a bank for a p... Start Learning for Free
Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?
  • a)
    Rs. 120
  • b)
    Rs. 240
  • c)
    Rs. 350
  • d)
    Rs. 280
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Nidhi borrowed Rs. 10000 from a bank for a period of two years at the...
Total interest that Nidhi has to pay after 2 years = Rs. (10000 x 2 x 10)/100 = Rs. 2000
Interest obtained by Nidhi from the bank = Rs. (3500 x 2 x 12.5)/100 = Rs. 875
Interest obtained by Nidhi from Chit fund = 6500(1 + 0.1)2 - 6500 = Rs. 1365
So total interest obtained by Nidhi = Rs. (875 + 1365) = Rs. 2240
Profit = Rs. (2240 - 2000) = Rs. 240
View all questions of this test
Most Upvoted Answer
Nidhi borrowed Rs. 10000 from a bank for a period of two years at the...
Calculation of Profit Obtained by Nidhi:

1. Amount borrowed from the bank:
Principal amount = Rs. 10000
Rate of interest = 10% per annum
Time = 2 years

Simple Interest Calculation:
Simple Interest = (Principal * Rate * Time) / 100
Simple Interest = (10000 * 10 * 2) / 100
Simple Interest = Rs. 2000

2. Investment in Bank offering Simple Interest:
Investment amount = Rs. 3500
Rate of interest = 12.5% per annum
Time = 2 years

Simple Interest Calculation:
Simple Interest = (Principal * Rate * Time) / 100
Simple Interest = (3500 * 12.5 * 2) / 100
Simple Interest = Rs. 875

3. Investment in Chit Fund offering Compound Interest:
Amount invested = Rs. (10000 - 3500) = Rs. 6500
Rate of interest = 10% per annum
Time = 2 years

Compound Interest Calculation:
Amount = Principal * (1 + Rate/100)^Time
Amount = 6500 * (1 + 10/100)^2
Amount = 6500 * (1.1)^2
Amount = 6500 * 1.21
Amount = Rs. 7865

Total Amount at the end of two years:
Total amount = Amount from Bank + Amount from Chit Fund
Total amount = 875 + 7865
Total amount = Rs. 8740

Profit Obtained:
Profit = Total Amount - Principal
Profit = 8740 - 10000
Profit = Rs. 240
Therefore, the profit obtained by Nidhi at the end of two years is Rs. 240.
Explore Courses for Railways exam

Similar Railways Doubts

Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer?
Question Description
Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer?.
Solutions for Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Railways. Download more important topics, notes, lectures and mock test series for Railways Exam by signing up for free.
Here you can find the meaning of Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Nidhi borrowed Rs. 10000 from a bank for a period of two years at the rate of 10% per annum. From that amount, she invested Rs. 3500 in another bank which offers simple interest @12.5% per annum and remaining amount she invested into a chit fund which offers compound interest of 10% per annum. What is the profit obtained by Nidhi at the end of two years?a)Rs. 120b)Rs. 240c)Rs. 350d)Rs. 280Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Railways tests.
Explore Courses for Railways exam

Top Courses for Railways

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev