Ashoka borrows ₹30,000 at 5% simple interest and lends it to Bhaskar at 5% per annum compound interest. If both repay their loans after 2 years, Ashoka's profit is

Explanation

Ashoka pays simple interest on ₹30,000 at 5% for two years:

SI=30000×0.05×2=₹3000,

so repayment = ₹33,000. Bhaskar repays compound interest:

30000(1.05)^2=₹33,075.

Profit = ₹33,075 − ₹33,000 = ₹75. The paper accidentally repeats the option number “(3)” for its final choice.