A person borrows Rs. 75000 for 9 years at 5.5% p.a. simple interest. He immediately lends it to anot

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17 Jul 2018 Simple Interest

A person borrows Rs. 75000 for 9 years at 5.5% p.a. simple interest. He immediately lends it to another person at 9.25 p.a for 9 years. Find his gain in the transaction per year.

OPtion

1) 25312.5
2) 5625.00
3) 12812.50
4) 9043.75
5) 5675.00
6) 2012.50
7) 9643.75
8) 5675.00
9) 2612.50
10)None of these

Solution

SI on borrowing = 75000*9*5.5/100 = 28875

SI on Lending = 75000*9*9.25/100 = 48562.5


Gain per year = (48562.5 - 28875)/9 = 2812.5

Option 10)

Correct Option: 10 Best Solution (4)