A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:
Q1. A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:
Answer: 0%
Explanation: The present value of Rs. 3600 payable after 2 years at 10% simple interest = 3600/1.20 = Rs. 3000, exactly the purchase price, so there is 0% gain.