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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.)?

A6000

B4500

C5000

D3500

Answer:

B. 4500

Read Explanation:

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


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