Question 67

A person borrows ₹75,000 for 3 years at 5% simple interest. He lends it to B at 7% for 3 years. What is gain (in ₹)?

Solution

Given,

A person borrow ₹75000 for 3 years at 5 %

Simple Interest = $$\frac{P\times\ R\times\ T}{100}$$

= $$\frac{75000\times\ 5\times\ 3}{100}=\ ₹11250$$

According to question ,

Interest earned by A from B

= $$\frac{75000\times\ 7\times\ 3}{100}=\ ₹15750$$

Required Gain = ₹15750 - ₹11250 = ₹4500

Hence, Option b is correct.

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