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.

  1. A.

    Rs. 270

  2. B.

    Rs.240

  3. C.

    Rs. 250

  4. D.

    Rs.220

Attempted by 11 students.

Show answer & explanation

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.

  1. 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.

  2. 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.

  3. Calculate the net gain of B:

    • Gain = Interest Received - Interest Paid

    • Gain = 1350 - 1080 = Rs. 270.

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