New RBI Grade B 2025 Notification will come Soon! Enroll Here

    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?  
    A Rs. 3700 Correct Answer Incorrect Answer
    B Rs. 3750 Correct Answer Incorrect Answer
    C Rs. 3725 Correct Answer Incorrect Answer
    D Rs.3745 Correct Answer Incorrect Answer

    Solution

    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

    Practice Next

    Relevant for Exams: