Question

A person borrowed Rs.5000 at 4% rate of interest for 2 years. He lent out the same amount at 6% rate of interest for 2 years. Then his profit is:

Answer 1

if its for simple interest then
Interest for 4% = (5000 × 4 × 2)/100
= Rs. 400
Interest for 6% = (5000 × 6 × 2)/100
= Rs. 600

Therefore, Profit = Rs.(600 - 400)
= Rs. 200 Ans.