Multiple choice

A lends Rs. 3500 to B at simple interest 10% per annum and B lends the sum to C at 11.5% per annum on simple interest. Find the gain of B in a period of 3 years.

  1. Rs. 1207.50

  2. Rs. 157.50

  3. Rs. 117.50

  4. Rs. 187.50

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

B borrows 3500 at 10% and lends at 11.5%. The net interest rate gain for B is 1.5% per annum. Gain = (Principal * Rate * Time) / 100 = (3500 * 1.5 * 3) / 100 = 35 * 4.5 = 157.50.

AI explanation

Using the simple interest formula, B pays 10% of 3500 for 3 years, which is 3500 times 10 times 3 divided by 100, equalling 1050. B earns 11.5% of 3500 for 3 years, which is 3500 times 11.5 times 3 divided by 100, equalling 1207.5. The gain is the difference between the interest earned and paid, 1207.5 minus 1050, resulting in Rs. 157.50.

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