A person borrows Rs 75 000 for 3 years at 5 simple interest He lends it to B at 7 for 3 years What i...........

Quantitative Aptitude (MTS) Simple Interest

A person borrows Rs 75,000 for 3 years at 5% simple interest. He lends it to B at 7% for 3 years. What is gain (in Rs)?

This questions was previously asked in

SSC MTS 13th October 2021 Shift-1

35,00

45,00

6,000

5,000

- The person borrows Rs 75,000 at 5% simple interest for 3 years.

- Simple Interest (SI) = Principal × Rate × Time

- SI on borrowed amount = 75,000 × 5% × 3 = Rs 11,250

- The person lends the same amount (Rs 75,000) to B at 7% simple interest for 3 years.

- SI on lent amount = 75,000 × 7% × 3 = Rs 15,750

- Gain from the two transactions:

- Gain = SI from lending - SI from borrowing

- Gain = 15,750 - 11,250 = Rs 4,500

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