18. If Manish lends Rs. 5500 to Rakesh at 8% per annum and Rakesh lends the same sum to Suresh at 10% per annum, find the gain of Rakesh in a period of 2 years
220
210
120
200
220 is the correct answer
Given: If Manish lends Rs. 5500 to
Rakesh at 8% per annum and Rakesh
lends the same sum to Suresh at 10%
per annum
To Find: The gain of B in a
period of 2 years
Solution:
The gain of Rakesh will be equal to the difference between the interest which Suresh pays to Rakesh and the interest which Rakesh pays to Manish for the amount borrowed.
We know that simple interest = P × R × T/100
Rakesh's gain = P × R× T/100 - P ×R × T /100
Since, P and T are same in both cases
Rakesh's gain = 5500×10×2/100 - 5500×8×2/100
Rakesh's gain= 1100 - 880 = 220
So, 220 is the correct answer
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