Sunita borrows ₹5,500 for 3 years at 6.5% per annum simple interest. She immediately lends it to Vedanshi at 9.3% per annum simple interest for 3 years. Find her gain (in ₹) in the transaction per year.
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Correct answer: D
Explanation
The correct answer is option 4, i.e., 154.
Simple Interest = (Principal × Rate × Time) ÷ 100
Interest paid by Sunita: 5500 × 6.5 × 3 ÷ 100 = 1072.5 ₹
Interest received from Vedanshi: 5500 × 9.3 × 3 ÷ 100 = 1534.5 ₹
Total gain = 1534.5 − 1072.5 = 462 ₹
Gain per year = 462 ÷ 3 = 154 ₹ per year