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A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:
  • a)
    0%
  • b)
    5%
  • c)
    7.5%
  • d)
    10%
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600...
C.P. = Rs 3000
S.P. = Rs [(3600 × 100)/ 100 + (10 × 2)] 
= Rs 3000
Gain = 0%
View all questions of this test
Most Upvoted Answer
A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600...
Given information:
- A man purchased a cow for Rs 3000.
- He sold it the same day for Rs 3600.
- The buyer was given a credit period of 2 years.
- The rate of interest is 10% per annum.

Calculating the amount the man received:
The man sold the cow for Rs 3600 and allowed the buyer a credit period of 2 years. This means that the buyer will pay the amount after 2 years. However, since the man wants to calculate his gain, he needs to find the present value of the amount he will receive after 2 years.

Using the formula for calculating the present value of an amount received in the future:
Present Value = Future Value / (1 + Rate of Interest)^n

Where:
Future Value = Rs 3600
Rate of Interest = 10% per annum
n = 2 years

So, the present value of Rs 3600 received after 2 years would be:
Present Value = 3600 / (1 + 0.1)^2
Present Value = 3600 / (1.1)^2
Present Value = 3600 / 1.21
Present Value = Rs 2975.20

Calculating the gain:
The man purchased the cow for Rs 3000 and received a present value of Rs 2975.20 after 2 years. To calculate the gain, we need to find the difference between the selling price and the cost price.

Gain = Selling Price - Cost Price
Gain = Rs 2975.20 - Rs 3000
Gain = -Rs 24.80

Since the gain is negative, it means the man has incurred a loss rather than a gain. The negative gain indicates that the selling price was less than the cost price.

Therefore, the man has a gain of 0%.
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A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:a)0%b)5%c)7.5%d)10%Correct answer is option 'A'. Can you explain this answer?
Question Description
A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:a)0%b)5%c)7.5%d)10%Correct answer is option 'A'. Can you explain this answer? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:a)0%b)5%c)7.5%d)10%Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man purchased a cow for Rs 3000 and sold it the same day for Rs 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:a)0%b)5%c)7.5%d)10%Correct answer is option 'A'. Can you explain this answer?.
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