Interest

Solve the question of and select the option from the choices A through D/E. Check your Answer and view the explanation.

Question: 3

Saleem borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends money to Rahil at

\frac{25}{4}

% p.a. for 2 years. Find the gain of one year by Saleem.

110.50
111.50
112.50
113.50

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Correct Answer: C

Two things need to give attention in this question, First we need to calculate gain for 1 year only.

Second, where we take money at some interest and lends at other, then we use to subtract each other to get result in this type of question. Lets solve this Simple Interest question now.

Gain in 2 year = $\frac{5000 × 25 × 2}{4 × 100}$ − $\frac{5000 × 4 × 2}{100}$ = 625 − 400 = 225 So gain for 1 year = $\frac{255}{2}$ = 112.50

Interest

Question: 3

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Correct Answer: C

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