A man purchased a cow for Rs. 300 and sold it the same day for Rs. 360, allowing the buyer at the credit of 2 years. If the rate of interest be 7 1/ 2% per annum, then the man has a gain of?
Correct Answer: 5%
Explanation:
P.W. of Rs. 360 due 2 years hence at 71/7% per annum
= Rs. { {100 x 360} / {100 + (50/7 x 2)}}
= Rs. { (100 x 360 x 7) / 800} = Rs. 315
∴ S.P. = Rs. 315
Hence, gain % = (15 x 100) / 300 = 5%
