Simple Interest-Data Intensity 1 Questions and Answers Discussion Page.

14.	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.	Rs. 112.50
	B.	Rs. 125
	C.	Rs. 225
	D.	Rs. 167.50

Answer: Option A

Explanation:

Gain in 2 years

= Rs. 5000 x 25 x 2 - 5000 x 4 x 2

4 100 100

= Rs. (625 - 400)

= Rs. 225.

Gain in 1 year = Rs. 225 = Rs. 112.50

2

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Published by:Michael Daani

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