A person borrows ₹18,000 for 4 years at 10% per annum simple interest. He lends it to another person at 15% per annum for 3 years. What is his average gain (in ₹) in the transaction year?
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Correct answer: D
Explanation
The correct answer is option 4 i.e. 225.
Gain = [(18000 × 10 × 4)/100] - [(18000 × 15 × 3)/100]
= 8100 - 7200 = 900
Average gain in the transaction year = 900/4 = 225