Question

A man purchased a house for rupees 4000 . He sold it the same day for rupees 4840. Allowing the buyer 2 years credit and other by gained 10%. What is the rate of interest?

Answer 1

Answer:

5.5%

Step-by-step explanation:

Given

A man purchased a house for rupees 4000 . He sold it the same day for rupees 4840. Allowing the buyer 2 years credit and other by gained 10%. What is the rate of interest?

Cost price = Rs 4000

Now gain = 10%

So 10% gain of Rs 4000 is Rs 400. So profit is Rs 400

Now actual selling price is Rs 4840.

Profit is 4,840 – 4000 = Rs 840

Difference is 840 – 400 = 440

For 2 years profit is Rs 440

So for 1 year 440 / 2 = Rs 220

For Rs 4000, interest is Rs 220

Therefore for 100, it will be 220 x 100 / 4000 = 11/2 = 5.5%

So rate of interest is 5.5%