1.  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.

A. ₹ 112.50
B. ₹ 125
C. ₹ 150
D. ₹ 167.50

Answer: Option A

Explanation:

Gain in 2 years

= ₹  5000 x 25 x 2 - 5000 x 4 x 2
4 100 100

= ₹  (625 - 400)
= ₹  225.

Gain in 1 year = ₹ 225= ₹ 112.50
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