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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