# A Person Borrows ₹ 5000 for 2 Yr at 4% per Annum Simple Interest. He Immediately Lends It to Another Person at 6 1 4 per Annum for 2 Yr. Find His Gain in the Transaction per Year. - Mathematics

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MCQ

A person borrows ₹ 5000 for 2 yr at 4% per annum simple interest. He immediately lends it to another person at 6 1/4 per annum for 2 yr. Find his gain in the transaction per year.

#### Options

• ₹112.50

• ₹125

• ₹150

• ₹167.50

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#### Solution

₹112.50
Explanation :
Gain in 2 yr

= ₹[((5000xx2xx25)/(100xx4))-((5000xx4xx2)/100)]

= ₹(625 - 400) = ₹225

Gain in 1 yr = (225/2) = 112.50

Concept: Simple and Compound Interest
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