A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6¼% p.a for 2 years. Find his gain in the transaction per year.

Question

Accepted Answer

Gain in 2 years

…

= Rs.

[

❨

5000 x

25

∴ Gain in 1 year = Rs.	❨	225	❩	= Rs. 112.50
		2

A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6¼% p.a for 2 years. Find his gain in the transaction per year.

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