Mr Crazyarala took a loan of Rs. 10,000 at the rate of `12%` p.a. simple interest and lent this money to is neighbour at `18%` simple interest for 2 years. If he cleared the loan in two years, then find his profit in this transaction.

Answer

Rs. 1200

Explanation

P=Rs. 10000
Rate`=12%`pa
T=2 years
`I_(1)=(PTR)/(100)`
`=(10000xx2xx12)/(100)=Rs. 2400 `
Amount lent
`P=Rs.10000,"Rate"=18%`p.a.
T=2years
`I_(2)=(PTR)/(100)=(10000xx2xx18)/(100)=Rs. 3600`
Profit`=I_(2)-I_(1)=Rs.(3600-2400)=Rs. 1200`