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Q.
Manju borrows Rs.5000 for 2 years at 4% p.a. simple interest from Sudha. She immediately lends it to another person at 6 1⁄4% p.a for 2 years. Find her gain in the transaction per year.
A.
Rs. 101
B.
Rs. 98.5
C.
Rs. 124.3
D.
Rs. 112.5
View Answer
Correct choice: D
Explanation:
Manju borrows Rs. 5000 for 2 years at 4% p.a. simple interest She also lends it at 6 1⁄4% p.a for 2 years => Total Gain = 6 1/4% − 4% = 2 1/4% So her gain in the transaction for 1 year = The simple interest she gets for Rs.5000 for 1 year at 2 1⁄4% per annum = PTR100=5000×94×1100PTR100=5000×94×1100 = Rs. 112.5/ year.
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