Akash borrows ₹ 65000 at 10% per annum simple interest

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Akash borrows ₹ 65000 at 10% per annum simple interest for 3 yr and lends it at 10% per annum compound interest for 3 yr , Find his gain after three years. ?

1. ₹ 2015
2. ₹ 1330
3. ₹ 1300
4. None of these

Correct Option: A

SI on ₹ 65000 at the rate of 10% for 3 yr
= (65000 x 10 x 3)/100 = ₹ 19500

CI on ₹ 65000 at the rate of 10% for 3 yr
= 65000(1 + 10/100)² - 65000
= 65000(11 x 11 x 11 - 10 x 10 x 10)/1000 = ₹ 21515

∴ Required gain = 21515 - 19500 = ₹ 2015