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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
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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.
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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?.
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