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A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year
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A person borrows ₹5000 for 2 year 4% p.a simple interest . He immed...
Calculation of Interest
The borrower borrows ₹5000 for 2 years at 4% p.a. simple interest. Therefore, the interest on this loan will be:
Interest = (Principal * Rate * Time)/100
Interest = (5000 * 4 * 2)/100
Interest = ₹400
So, the borrower will have to pay ₹400 as interest on the loan.
Calculation of Income
The borrower immediately lends the ₹5000 to someone else at 6^1/4% p.a. for 2 years. Therefore, the income on this loan will be:
Income = (Principal * Rate * Time)/100
Income = (5000 * 6.25 * 2)/100
Income = ₹625
So, the borrower will earn ₹625 as income on the loan.
Calculation of Gain per Year
The gain in the transaction per year can be calculated as follows:
Gain per year = Income per year - Interest per year
Interest per year = Interest / Time
Interest per year = 400 / 2
Interest per year = ₹200
Income per year = Income / Time
Income per year = 625 / 2
Income per year = ₹312.5
Gain per year = Income per year - Interest per year
Gain per year = ₹312.5 - ₹200
Gain per year = ₹112.5
So, the gain in the transaction per year is ₹112.5.
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A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ?
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A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ?.
A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person borrows ₹5000 for 2 year 4% p.a simple interest . He immediately lends to another 6^1/4 p.a for 2 years .find the gain in the transaction per year ?.
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