Question

A person borrows Rs. 75,000 for 3 years at 7% simple interest. He lends it to B at 5% for 3 years. What is his loss (in Rs.)?

• A. 6000
• B. 4500
• C. 5000
• D. 3500

Answer 1

Answer:

B. 4500

Simple Interest = Principal × Rate/100 × Time Simple interest payable = 75000 × 7/100 × 3 = Rs.15750 Simple interest Receivable = 75000 × 5/100 × 3 = Rs.11250 Loss incurred by the person = 15750 - 11250 = Rs. 4500