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Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate o

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Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate o  [#permalink]

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New post 17 Jul 2019, 04:07
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E

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67% (01:56) correct 33% (01:02) wrong based on 3 sessions

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Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate of simple interest. He then loans out Rs. 20,000 for 8 years at 7.5% rate of simple interest. He could loan out the balance only at 5.5% for 8 years. In the entire transaction, did Ajay make or lose money and how much?

1. Gain 400
2. Gain 800
3. No gain, No loss
4. Loss 400
5. Loss 800
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Re: Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate o  [#permalink]

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New post 17 Jul 2019, 04:43
The money Ajay will have to pay for interest rates after 8 years is
8(30000*6.5/100)=8*1950
The money Ajay will take from interest rates after 8 years:
1)8(20000*7.5/100)+8(10000*5.5/100)= 8*(1500+550)=8*2050

8*2050-8*1950=800 (gain 800 Rs)
The answer choice is B.

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Re: Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate o   [#permalink] 17 Jul 2019, 04:43
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Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate o

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