A person borrows Rs. 45000 for 4 years at 6.25% p.a. simple interest. He immediately lends it to ano

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07 May 2018 Simple Interest

A person borrows Rs. 45000 for 4 years at 6.25% p.a. simple interest. He immediately lends it to another person at 9.75 p.a for 4 years. Find his gain in the transaction per year.

OPtion

1) 6300
2) 6500
3) 6100
4) 3150
5) 3050
6) 3350
7) 1575
8) 1550
9) 1600
10)None of these

Solution

SI on borrowing = 45000*4*6.25/100 = 11250

SI on Lending = 45000*4*9.75/100 = 17550


Gain per year = (17550 - 11250)/4 = 6300/4 = 1575

Option 7)

Correct Option: 7 Best Solution (0)