Question

Asha borrowed Rs 16000 from Sarita at 7.5% per annum simple interest. On the same day she lent the whole amount to Gouri at the same rate for 2 years. How much gain Asha will get after the two years ?

Answer 1

Asha gained Rs 2400 after lending the amount to Gouri

Explanation:

Simple interest = (Principal x Rate of interest x Time in years) / 100

           = (16000 x 7.5 x 2) / 100

           = 240000 / 100

               = 2400

The simple interest that Asha gained from lending the amount to Gouri was Rs 2400.

The total amount that Gouri had to return was = Principal + Interest

                                   = 16000 + 2400

                                   = 18400

Thus, Asha gained Rs 2400, since Gouri had to return a total amount of Rs 18400