Lessons

General Aptitude
3.1 Simple Interest - General Questions

1 / 14

Q.

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.

View Answer

Correct choice: 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
2
1 / 14