A person borrows 3000 at 5% pa, simple interest. He immediately lends it to another person at 7% pa, simple interest. Find his gain y the transaction per year
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Answer:
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
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