12) Sama borrows 20,000 at 8% p.a. for 5 years and
lends it to Linda for 5 years at the rate of 14%
p.a. Find the gain Sama makes.
Answers
Answered by
30
Answer:
6000
Step-by-step explanation:
Borrowing interest rate = 8%
Lending interest rate = 14%
Thus, gain for Sama = 14% - 8% = 6% per annum
Amount of gain for Sama = Period in years x Gain per year
= 5 x (6% x 20000)
= 5 x 0.06 x 20000
= 5 x 1200
= 6000
Answered by
0
Answer:
6000
Step-by-step explanation:
Borrowing interest rate = 8%
Lending interest rate = 14%
Thus, gain for Sama = 14% - 8% = 6% per annum
Amount of gain for Sama = Period in years x Gain per year
= 5 x (6% x 20000)
= 5 x 0.06 x 20000
= 5 x 1200
= 6000
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