Afnan wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?
Q1. Afnan wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?
Answer: Rs.21.60
Explanation: SI = 6000×6×2/100 = Rs. 720. CI = 6000×(1.06²−1) = Rs. 741.60. Income = 741.60 − 720 = Rs. 21.60.