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 Amount 20000Interest 6 %duration 3 yearsFormula PTR/100 on substitution 20000X6X3/100 answer 3600 Amount 20000Interest 8.5%duration 3 yearsFormula 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 … Read more