Multiple choice

Neha takes a loan of Rs. 15,000 for 4 years at an annual simple interest rate of 3.5%. She invests the loan amount in a different scheme that offers 5.5% simple interest per annum. What is Neha's yearly gain from this investment?

  1. Rs. 280

  2. Rs. 290

  3. Rs. 300

  4. Rs. 310

  5. Rs. 320
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Gain per year = (5.5% - 3.5%) of 15000 = 2% of 15000 = 300.

AI explanation

The yearly interest paid on the loan is calculated using simple interest as 15000 times 3.5 percent, which equals 525. The yearly interest earned from the investment scheme is 15000 times 5.5 percent, which equals 825. The yearly gain is the difference between the interest earned and the interest paid, so 825 minus 525 equals 300. Neha's yearly gain from this investment is Rs. 300.

Keep practicing — related questions