1.  A man purchased a bicycle for Rs.4800 and sold it immediately at Rs.5995, allowing the buyer a credit of one and a half years. If the rate of interest is 6%, then the man gains:
A. Rs.700
B. Rs.1195
C. Rs.495
D. Rs.900

Answer: Option A

Explanation:

Cost Price = Rs. 4800.

Selling price (P.W. of Rs. 5995 due 1.5 years hence)

P.W. = Rs. 5995 x 100 = Rs. 5500.
100 + (6 x 1.5)

Gain = 5500 - 4800 = Rs. 700