Correct Answer: INR 1,152

Solution : Given,
Principal borrowed by A from B = INR 3,600
Rate of interest charged by B on loan = 20% per year (simple interest)
Time for which A borrowed from B = 2 years
A lent 75% of the borrowed amount to C at a rate of 20% per year (compound interest) for 2 years
We know,
Simple Interest (SI) = $\frac{P × R × T}{100}$
Compound Interest (CI) = $P × [ (1 + \frac{R}{100})^T- 1 ]$
Total interest = CI - SI
Where,
P = principal amount, R = rate of interest per annum, and T = time in years
Interest paid by A = Simple interest on loan from B = $\frac{P × R × T}{100}$
= $\frac{3600 × 20 × 2}{100}$
= IINR 1,440
Amount lent to C = 75% of INR 3,600 =  INR 2,700
Interest received by A = Compound interest on the amount lent to C
= $P × [ (1 + \frac{R}{100})^T- 1 ]$
= $2700 × [ (1 + \frac{20}{100})^2 - 1 ]$
= $2700 × \frac{11}{25}$
= INR 1188
Total loss incurred By A = 1440 - 1188 + amount for his Purpose.
= 1440 - 1188 + 25% of 3600
= 1440 - 1188 + 900
= INR 1152
Hence, the correct answer is INR 1,152.