A borrows a sum of Rs 90,000 for 4 years at 5% simple interest. He lends it to B at 7% for 4 years at simple interest. What is his gain (in Rs)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 7,200
P = 90,000
S.I. for A = (90,000 × 4 × 5)/100 = 18,000 Rs.
S.I for B = (90,000 × 7 × 4)/100 = 25200 Rs.
Profit= 25200 - 18000 = 7200 Rs.