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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 614614 p.a for 2 years. Find his gain in the transaction per year
A.
Rs. 112.50
B.
Rs.150.25
C.
Rs.167.50
D.
Rs.170
View Answer
Correct choice: A
Explanation:
gain in 2 years =Rs.[(5000*25/4*2/100)−(5000*4*2/100)] = Rs. (625 - 400) = Rs. 225 gain in 1 year =Rs.(225/2)=112.50
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