A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6% p.a for 2 years. Find his gain in the transaction per year. A. Rs. 112.50 B. Rs. 125 C. Rs. 225 D. Rs. 167.50 Answer Workspace Report Discuss Answer with explanation Answer: Option A Explanation Gain in 2 years = Rs. 5000 x 25 x 2 – 5000 x 4 x 2 4 100 100 = Rs. (625 – 400) = Rs. 225. Gain in 1 year = Rs. 225 = Rs. 112.50 Workspace
Gain in 1 year = Rs.
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