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If A lends Rs. 3500 to B at 10% p.a. and B lends the same sum to C at 11.5% p.a., then the gain of B (in Rs.) in a period of 3 years is
- A107.5
- B115.5
- C157.5
- D177.5
Answer not set
Discussion 1
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CCommunity
We know that, formula for simple interest:
$(S.I. = \frac{{P \times R \times T}}{{100}})$
Where,
S.I. = Simple Interest
P= principal
T = Time
R = Rate of interest
Interest payable to A = 3500 × (10/100) × 3 = 1050
Interest payable to B = 3500 × (11.5/100) × 3 = 1207.5
The basic amount in both transactions is same. So, difference between interests in two transactions is the gain.
∴ B’s gain = amount B gets – amount B has to pay = 1207.5 – 1050 = 157.5
$(S.I. = \frac{{P \times R \times T}}{{100}})$
Where,
S.I. = Simple Interest
P= principal
T = Time
R = Rate of interest
Interest payable to A = 3500 × (10/100) × 3 = 1050
Interest payable to B = 3500 × (11.5/100) × 3 = 1207.5
The basic amount in both transactions is same. So, difference between interests in two transactions is the gain.
∴ B’s gain = amount B gets – amount B has to pay = 1207.5 – 1050 = 157.5