A man borrowed Tk. 900 at 10% per annum simple interest and immediately lent the whole sum at 10% per annum compound interest. What does the gain at the end of 2 years?

A man borrowed Tk. 900 at 10% per annum simple interest and immediately lent the whole sum at 10% per annum compound interest. What does the gain at the end of 2 years?

A Tk. 8

B Tk. 9

C Tk. 6

D None

Solution

Correct Answer: Option B