B borrows ₹ 5,000 from A at 6% p.a. simple interest and

B borrows ₹ 5,000 from A at 6% p.a. simple interest and lends it to C at compound interest of 10% p.a. If B collects the money back from C after 2 years and repays A, the profit made by B in the transaction is

Given that , Principal = ₹ 5,000 , Time = 2 years , Rate = 6% p.a

Interest got by A =	Principal × Time × Rate
	100

Interest got by A =	5000 × 2 × 6	= Rs. 600
	100

Now , Time = 2 years , Rate = 10% p.a

C.I. received by B = P			1 +	R		^T	− 1
				100

C.I. received by B = 5000			1 +	10		²	− 1
				100

C.I. received by B = 5000			11		²	− 1
			10

C.I. received by B = 5000		121	− 1
		100

C.I. received by B =	5000 × 21	= Rs. 1050
	100

B’s profit = C.I. received by B - Interest got by A
∴ B’s profit = Rs. (1050 – 600) = Rs. 450