Question

A person borrows Rs. 6000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6% per annum for 2 years. Find his gain in the transaction.
1. Rs. 240
2. Rs. 260
3. Rs. 250
4. Rs. 300

Answer 1

Correct Answer - Option 1 : Rs. 240

GIVEN:

A person borrows Rs. 6000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6% per annum for 2 years.

FORMULA USED:

SI = PRT/100

CALCULATION:

Applying the formula:

Gain = [6000 × 2 × 6]/100 - [6000 × 2 × 4]/100

Gain = 720 - 480

Gain = Rs. 240

∴ The gain in the transaction is Rs. 240.