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:

7.5%

10%

Formula used:

Profit % = SP−CP/CP×100

Profit % = SP−CPCP×100, where SP is the selling price and CP is the cost price.

Complete step-by-step solution:

We are given that man (the buyer) purchases a cow for Rs. 3000 on a credit basis at a rate of interest 10% per annum for 2 years.

10% of Rs. 3000 is

10/100

×3000=Rs.300

10100×3000=Rs.300

For 2 years, the interest is

2×300=Rs.600

Therefore the actual price (cost price) of the cow is

3000+600=Rs.3600

The selling price of the cow is Rs. 3600.

Therefore, the profit or gain by selling the cow is

⇒Profit % = 3600−3600/ 3600 ×100=0%

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ND1-1-2023