Question
Vedant borrows Rs.75,000 for 2 yrs at 3% p.a simple
interest. He immediately lends it to Abhishek at 5.5% p.a. for 2 yrs at simple interest. How much Vedant gained in the transaction? ÂSolution
1st transaction: Principal= Rs. 75,000, R= 3% p.a., T= 2 yrs. Simple Interest = (P x R x T)/100 = (75000 x 3 x 2)/100 :. S I = Rs. 4500 2nd transaction: Principal= Rs. 75,000, R= 5.5% p.a., T= 2 yrs. Simple Interest = (P x R x T)/100 = (75000 x 5.5 x 2)/100 :. S I = Rs. 8250  S I = Rs. 8250 Gain in the transaction = Rs. 8250 - Rs. 4500 = Rs. 3,750
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