Question

Anupam took a loan Rs. 8000 for SBI Bank for 2 years at 12/2% per annum at a simple interest. He immediately lends it to Aman at 15/4% per annum for 4 years. Then find his gain in transaction per year.

1. Rs. 110
2. Rs. 120
3. Rs. 130
4. Rs. 150

Answer 1

Correct Answer - Option 2 : Rs. 120

Given

 Principal for Anupam = Rs. 8000

Principal for Aman = Rs. 8000

Time period for Anupam = 2 years

Time period for Aman = 4 years

Rate of interest for Anupam = 12/2%

Rate of interest for Aman = 15/4%

Formula used

simple interest = (Principal × Rate × Time)/100

Calculation

Gain in two years = [(8000 × 15/4 × 4)/100] - [(8000 × 12/2 × 2)/100]

Gain in two years = 240

Gain per year = 120

∴ the gain in transaction per years is Rs. 120