A person borrows 7000 for 3 years at 6% p.a. simple interest.
A person borrows 7000 for 3 years at 6% p.a. simple interest. He immediately lends it to another person at 31 % p.a. for 3 years. Find his gain in the transaction per year.
Answer/Solution
1750
Steps/Work
Gain in 3 years
= [(7000×31×3/100)−(7000×6×3/100)]
= (6510 – 1260) = 5250.
∴ Gain in 1 year = (5250â„3) = 1750
Answer E
= [(7000×31×3/100)−(7000×6×3/100)]
= (6510 – 1260) = 5250.
∴ Gain in 1 year = (5250â„3) = 1750
Answer E