8 Views

Question : A person borrows Rs. 20000 at the rate of 6% per annum on simple interest for 3 years. He immediately lends it to another person at the rate of 8.5% per annum on simple interest for 3 years. What is the value of gain per year?

Option 1: Rs. 1500

Option 2: Rs. 500

Option 3: Rs. 800

Option 4: Rs. 200


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Rs. 500


Solution : Given,
A person borrows Rs. 20000 for 3 years at 6% per annum Simple Interest.
He immediately lends it to another person at 8.5% per annum for 3 years.
P = Rs. 20000 and time, $T$ = 1 year [As we need per year profit]
First rate, $R_2$ = 6% and Second rate, $R_1$ = 8.5%
We know,
Simple Interest $=\frac{\text{P}(\text{R}{_1}-\text{R}{_2})T}{100}=\frac{20000 × (8.5 - 6) × 1}{100}=\frac{20000 × 2.5 × 1}{100}=500$
Hence, the correct answer is Rs. 500.

How to crack SSC CHSL

Candidates can download this e-book to give a boost to thier preparation.

Download Now

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books