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?

OPTIONS A) Rs 200 B) Rs 800 C) Rs 500 D) Rs 1500 detailed solution Amount 20000Interest 6 %duration 3 yearsFormula PTR/100on substitution 20000X6X3/100answer 3600Amount 20000Interest 8.5%duration 3 yearsFormula PTR/100on…