A person borrows Rs.5000 for 2 years at 4% p.a. simple interest.

A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 7% p.a for 2 years. Find his gain in the transaction per year.

Answer/Solution

150

Steps/Work

Explanation :
The person borrows Rs. 5000 for 2 years at 4% p.a. simple interest
Simple interest that he needs to pay = PRT/100=5000×4×2/100=400
He also lends it at 7% p.a for 2 years
Simple interest that he gets = PRT/100=5000×7×2/100=700
His overall gain in 2 years = Rs.700 - Rs.400 = Rs.300
His overall gain in 1 year = 300/2 = Rs.150
Answer : Option B

Gain Calculator / Auto Solver

A person borrows $ for years at % p. A. Simple interest. He immediately lends it to another person at % p. A for years. Find his gain in the transaction per year.

Calculated Answer

150

Step by Step Solution

In order to solve problem, you must evaluate ((n₁ * n₀ * n₃) / 100 - (n₁ * n₀ * n₂) / 100) / n₁.

n₀ =	5000
n₁ =	2
n₂ =	4
n₃ =	7
n₄ =	2

((n₁ * n₀ * n₃) / 100 - (n₁ * n₀ * n₂) / 100) / n₁
Evaluate n₀ * n₃ = 35000
((n₁ * 35000) / 100 - (n₁ * n₀ * n₂) / 100) / n₁
Evaluate n₁ * 35000 = 70000
(70000 / 100 - (n₁ * n₀ * n₂) / 100) / n₁
Evaluate 70000 / 100 = 700
(700 - (n₁ * n₀ * n₂) / 100) / n₁
Evaluate n₀ * n₂ = 20000
(700 - (n₁ * 20000) / 100) / n₁
Evaluate n₁ * 20000 = 40000
(700 - 40000 / 100) / n₁
Evaluate 40000 / 100 = 400
(700 - 400) / n₁
Evaluate 700 - 400 = 300
300 / n₁
Evaluate 300 / n₁ = 150
150
The answer to the problem and the result of ((n₁ * n₀ * n₃) / 100 - (n₁ * n₀ * n₂) / 100) / n₁ is 150

Quiz

Answer/Solution

Steps/Work

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Calculated Answer

Step by Step Solution