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  1. A man borrowed some money from a private organisation at 5% simple interest per annum. He lended 50% of this money to another person at 10% compound interest per annum and thereby the man made a profit of Rs. 3,205 in 4 years. The man borrowed.
    1. Rs. 80,000
    2. Rs. 1,00,000
    3. Rs. 1,20,000
    4. Rs. 1,50,000
Correct Option: B

Suppose Sum borrowed = Rs. P
Given that , Rate ( R ) = 5% , Time = 4 years

∴  Simple interest after 4 years ( SI ) =
P × 4 × 5
= Rs.
P
1005

Amount lent of on compound interest = Rs.
x
2

∴ C.I. = P 1 +
R
T − 1
100

C.I. =
P
1 +
10
4 − 1
2100

C.I. =
P
[(1.1)4 − 1]
2

C.I. =
P
(1.4641 − 1)
2

C.I. = Rs.
0.4641P
2

∴ C.I. - S.I. = 3205
∴ 
0.4641P
P
= 3205
25

⇒ 
2.3205P − 2P
= 3205
10

⇒  0.3205P = 32050
⇒  P =
32050
= Rs. 100000
0.3205



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