A person borrows Rs 20000 at the rate of 6 percent per annum on simple interest for 3 years. He immediately lends it to another person at the rate of 8.5% percent per annum on simple interest for 3 years. what is the value of gain per year?

April 5, 2023 by Rajesh

OPTIONS

A) Rs 200

B) Rs 800

C) Rs 500

D) Rs 1500

Amount 20000 Interest 6 % duration 3 years Formula PTR/100 on substitution 20000X6X3/100 answer 3600	Amount 20000 Interest 8.5% duration 3 years Formula PTR/100 on substitution 20000X8.5X3/100 answer = 5100
3600	5100

difference between this is profit= 5100-3600 = 1500

1500 profit for 3 years, then 500 per year

Final answer 500