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Nidhi borrowed Rs. 10000 from a bank for 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 the 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 two years at the rate of 10%...
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 two years at the rate of 10%...
Calculation of Profit obtained by Nidhi:

Calculating the interest on the loan amount:
- Principal amount = Rs. 10000
- Rate of interest = 10% per annum
- Time = 2 years
Simple Interest = (Principal x Rate x Time) / 100
Simple Interest = (10000 x 10 x 2) / 100 = Rs. 2000

Calculating the interest on the amount invested in the bank offering simple interest:
- Principal amount = Rs. 3500
- Rate of interest = 12.5% per annum
- Time = 2 years
Simple Interest = (Principal x Rate x Time) / 100
Simple Interest = (3500 x 12.5 x 2) / 100 = Rs. 875

Calculating the interest on the amount invested in the chit fund offering compound interest:
- Principal amount = Rs. (10000 - 3500) = Rs. 6500
- Rate of interest = 10% per annum
- Time = 2 years
Amount = Principal x (1 + Rate/100)^Time
Amount = 6500 x (1 + 10/100)^2 = Rs. 7150
Compound Interest = Amount - Principal
Compound Interest = 7150 - 6500 = Rs. 650

Total profit obtained by Nidhi:
Total profit = (Simple Interest on loan + Simple Interest on bank investment + Compound Interest on chit fund investment)
Total profit = (2000 + 875 + 650) = Rs. 3525
Therefore, the profit obtained by Nidhi at the end of two years is Rs. 3525.
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Nidhi borrowed Rs. 10000 from a bank for 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 the 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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Nidhi borrowed Rs. 10000 from a bank for 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 the 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 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 the 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 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 the 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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