A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 614 p.a for 2 years. Find his gain in the transaction per year

  $gain in 2 years =Rs.5000*\frac{25}{4}*\frac{2}{100}-\frac{5000*4*2}{100}$  

= Rs. (625 - 400) 

= Rs. 225 

  $gain in 1 year =Rs.\frac{225}{2}=112.50$