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To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender is
- a)Rs 50000
- b)Rs 40000
- c)Rs 25000
- d)Rs 75000
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000...
Given:
- Mr. Arun borrowed a total of Rs 60,000 from two money lenders.
- The interest is compounded annually.
- The loan is to be repaid at the end of 2 years.
- Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender.
- The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender.
- If Mr. Arun had borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second.
To find:
The amount of money borrowed by Mr. Arun from the first money lender.
Solution:
Let's assume:
- The amount borrowed from the first money lender is x.
- The amount borrowed from the second money lender is Rs 60,000 - x.
Case 1: Repayment with different interest rates
At the end of 2 years, Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender.
Using the compound interest formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years.
For the first money lender:
A1 = x(1 + r/100)^(2)
For the second money lender:
A2 = (60,000 - x)(1 + (r - 10)/100)^(2)
Given that A1 - A2 = Rs 38,800, we can write the equation:
x(1 + r/100)^(2) - (60,000 - x)(1 + (r - 10)/100)^(2) = 38,800
Simplifying the equation, we get:
x[(1 + r/100)^(2) - (1 + (r - 10)/100)^(2)] = 38,800 + (60,000 - x)(1 + (r - 10)/100)^(2)
Case 2: Repayment with initial interest rates
If Mr. Arun had borrowed Rs 30,000 from each money lender at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second.
Using the compound interest formula, we can calculate the final amounts:
For the first money lender:
A1' = 30,000(1 + r/100)^(2)
For the second money lender:
A2' = 30,000(1 + (r - 10)/100)^(2)
Given that A1' - A2' = Rs 7500, we can write the equation:
30,000(1 + r/100)^(2) - 30,000(1 + (r - 10)/100)^(2) = 7500
Simplifying the equation, we get:
30,000[(1 + r/100)^(2) - (1 + (r - 10)/100)^(2)] = 750
- Mr. Arun borrowed a total of Rs 60,000 from two money lenders.
- The interest is compounded annually.
- The loan is to be repaid at the end of 2 years.
- Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender.
- The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender.
- If Mr. Arun had borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second.
To find:
The amount of money borrowed by Mr. Arun from the first money lender.
Solution:
Let's assume:
- The amount borrowed from the first money lender is x.
- The amount borrowed from the second money lender is Rs 60,000 - x.
Case 1: Repayment with different interest rates
At the end of 2 years, Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender.
Using the compound interest formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years.
For the first money lender:
A1 = x(1 + r/100)^(2)
For the second money lender:
A2 = (60,000 - x)(1 + (r - 10)/100)^(2)
Given that A1 - A2 = Rs 38,800, we can write the equation:
x(1 + r/100)^(2) - (60,000 - x)(1 + (r - 10)/100)^(2) = 38,800
Simplifying the equation, we get:
x[(1 + r/100)^(2) - (1 + (r - 10)/100)^(2)] = 38,800 + (60,000 - x)(1 + (r - 10)/100)^(2)
Case 2: Repayment with initial interest rates
If Mr. Arun had borrowed Rs 30,000 from each money lender at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second.
Using the compound interest formula, we can calculate the final amounts:
For the first money lender:
A1' = 30,000(1 + r/100)^(2)
For the second money lender:
A2' = 30,000(1 + (r - 10)/100)^(2)
Given that A1' - A2' = Rs 7500, we can write the equation:
30,000(1 + r/100)^(2) - 30,000(1 + (r - 10)/100)^(2) = 7500
Simplifying the equation, we get:
30,000[(1 + r/100)^(2) - (1 + (r - 10)/100)^(2)] = 750
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Community Answer
To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000...
Let the interest charged be r%
Since we know the principal amount in the second case, let us start with it
It is given that,
30000[1 + ((r+10)/100)]2 – 30000[1 + (r/100)]2 = 750
Solving the above equation, we will get r = 20%
Now let us consider first case,
Let the amount borrowed be X
X[1 + (30/100)]2 – (60000-X)[1 + (20/100)]2 = 38800
Solving, we will get X = Rs 40000
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To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer?
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To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer?.
To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer?.
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To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice To start a new enterprise, Mr. Arun has borrowed a total of Rs 60,000 from two money lenders with the interest being compounded annually, to be repaid at the end of 2 year. Mr. Arun repaid Rs 38,800 more to the first money lender compared to the second money lender at the end of 2 year. The first money lender charged an interest rate, which was 10% more than what was charged by the second money lender. If Mr. Arun had instead borrowed Rs 30,000 from each at their respective initial rates for 2 years, he would have paid Rs 7500 more to the first money lender compared to the second. Then, money borrowed by Mr. Arun from first money lender isa)Rs 50000b)Rs 40000c)Rs 25000d)Rs 75000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CAT tests.
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