Question

A person borrows 5000 for 2 year at 4 percent simple interest he immadiately lends it to anorher person at 6^1/4 for 2 years

Answer 1

Answer:

112.50 is the amount gain for 1 year

225 is the amount gain for 2 years

Explanation:

Gain in 2 years = Rs. [(5000x25x⁄42⁄100) - (500x4x2⁄100)]

= Rs. (625 - 400)

= Rs. 225

Gain in 1 year = Rs. (225⁄2)

= Rs. 112.50