Q. Arun borrows Rs. (2K + 5000) from bank for three years, paying interest of 12% per annum at simple interest. He spends 40% of amount and rest invested in a scheme for three years, earning 50% compound interest per annum. If difference between total amount to be paid by Arun and earnings of Arun from scheme is Rs. 1300, then find the value of K.
A.9500
B.8000
C.6000
D.7500
E. None of these
Ans: 7500
Sol:
Let amount borrowed by Arun from Bank = Rs. a
Total amount to be paid by Arun = a + a x 12% x
3 = 1.36a
Interest earned by Arun from scheme after three
years = 0.60a x (1.53 – 1) = 1.425a
Now,
1.425a – 1.36a = 1300
Value of a = 1300/0.065 = 20000
So, (2K + 5000) = 20000
Value of K = 15000/2 = Rs. 7500
Hence answer is option D