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A merchant borrows G 4,800 @ 6% simple interest and invests at 7.50% compound interest. If the transaction is closed at the

Question

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## Answers ( )

Answer:299.03

Step-by-step explanation:First we will calculate how much he has to return back for the amount borrowed

Principal P=4800, R=6%, T=3

SI=PRT/100=4800×6×3/100

=864

Amount payable = P+SI=4800+864=

5664This amount is invested at 7.50% compound interest for 3 years

P=4800, R=7.5%, n=3

Amount receivable=P(1+R/100)^n

=4800(1+7.5/100)^3

=4800(1.075)^3

=5963.025≈

5963.03Gain=Amount receivable – Amount payable

= 5963.03 – 5664

=

299.03