A borrows a sum of Rs. 90,000 for 4 years at 5% simple interest. He l…

Question

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.)?

Accepted Answer

Option C. 7,200. Answer & Solution Answer: Option C Solution: & A's,\, Principal = Rs . 90,000 & Rate = 5\% & Time = 4 years & S .I = 90,000 × 5 × 4100 = Rs . 18,000 & B's,\, Principal = Rs . 90,000 & Rate = 7\% & Time = 4 years & S .I = 90,000 × 7 × 4100 = Rs . 25,200 & Profit of A & = ( 25,200…