7. A bank offered its depositor an interest rate of6% per annum and lo

1.	7. A bank offered its depositor an interest rate of6% per annum and loans to borrowers at 18%p.a. If the entire amount of Rs 50000, deposited,is loaned out for 3 years, how much does the bankearn at the end of 3 years?
Answer» Depositer gets 6% interest per annumBank gets 18% interest on loan amountBank earn 18-6 = 12% per annum on loan SI = PRT/100 = 50000123/100 = 18000 Bank earns Rs 12000 at the end of 3 yrs Type errorBank earns Rs 18000 at the end of 3 yrs

7. A bank offered its depositor an interest rate of6% per annum and loans to borrowers at 18%p.a. If the entire amount of Rs 50000, deposited,is loaned out for 3 years, how much does the bankearn at the end of 3 years?

Answer»

Depositer gets 6% interest per annumBank gets 18% interest on loan amountBank earn 18-6 = 12% per annum on loan

SI = P*R*T/100 = 50000*12*3/100 = 18000

Bank earns Rs 12000 at the end of 3 yrs

Type errorBank earns Rs 18000 at the end of 3 yrs