If A lends Rs. 4500 to B at 8% per annum and B lends the same sum to C at 10%…
2024
If A lends Rs. 4500 to B at 8% per annum and B lends the same sum to C at 10% per annum, find the gain of B in a period of 3 years.
- A.
Rs. 270
- B.
Rs.240
- C.
Rs. 250
- D.
Rs.220
Attempted by 11 students.
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Correct answer: A
Step-by-Step Solution
To calculate B's gain, we determine the interest B receives from C and subtract the interest B must pay to A.
Calculate interest B pays to A:
Principal (P) = Rs. 4500
Rate (R1) = 8% p.a.
Time (T) = 3 years
Interest Paid = (P * R1 * T) / 100
Interest Paid = (4500 * 8 * 3) / 100 = 45 * 24 = Rs. 1080.
Calculate interest B receives from C:
Principal (P) = Rs. 4500
Rate (R2) = 10% p.a.
Time (T) = 3 years
Interest Received = (P * R2 * T) / 100
Interest Received = (4500 * 10 * 3) / 100 = 45 * 30 = Rs. 1350.
Calculate the net gain of B:
Gain = Interest Received - Interest Paid
Gain = 1350 - 1080 = Rs. 270.