A trader buys goods for Rs. 2,000 cash and sells them for Rs. 2,420 on 1 year’s credit. If interest is 10% per annum, what is his gain?
Correct answer D. Rs. 200
Explanation
PW of Rs. 2,420 due in 1 year at 10% = 2,420 × 100/110 = Rs. 2,200. Gain = 2,200 − 2,000 = Rs. 200.
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