A person borrows Rs. 37500 for 4 years at 5.75% p.a. simple interest. He immediately lends it to ano

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06 Mar 2018 Simple Interest

A person borrows Rs. 37500 for 4 years at 5.75% p.a. simple interest. He immediately lends it to another person at 9.25 p.a for 4 years. Find his gain in the transaction per year.

OPtion

1) 1312.5
2) 1213.5
3) 1413.5
4) 5250
5) 5350
6) 5150
7) 2625
8) 2525
9) 2725
10)None of these

Solution

SI on borrowing = 37500*4*5.75/100 = 8625


SI on Lending = 37500*4*9.25/100 = 13875


Gain per year = (13875 - 8625)/4 = 5250/4 = 1312.5

Option 1)

Correct Option: 1 Best Solution (0)