Question

A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6(1/4) p.a for 2 years. Find his gain in the transaction per year.

a.

Rs. 112.50

b.

Rs. 125

c.

Rs. 150

d.

Rs. 167.50

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Answer: (a).Rs. 112.50

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Q. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6(1/4) p.a for 2 years. Find his gain in the transaction per year.

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