Question

A person Borrows Rs. 5000 for 2 years at 4%p.a simple interest. he lends to it to a another person at 25/4% p.a for 2 years . Find the gain in the transaction per year .

pls answer by image because it is easy to write in notebook after seeing an image

Answer 1

Correct option is

C

Rs 112.50

First case:

P= Rs. 5000,R=4%,T=2 years

Interest paid by him = Rs

100

5000×4×2

= Rs 400

Second case:

P= Rs 5000,R=

4

25

%,T=2 years

Interest he received = Rs

100

5000×6

4

1

×2

= Rs

100×4

5000×25×2

= Rs 625

∴ his gain for two years = Rs 625− Rs 400= Rs 225

His gain per year = Rs

2

225

= Rs 112.50

Hence, option C is correct.

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Answer 2

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