Question

A person borrows Ruppes 5000 for 2 years at 4 p.a simple interest. He lends to it to anoyher person at 25 / 4 p.a for 2 years . Find his gain transaction. Please answer fast.

Answer 1

from part 1
principal= Rupees 5,000 rate=4%p.a. time= 2 years
simple interest =5000 ×4×2/100= rupees 400
amount= S.I.+ principal
=5000+400=RS 5400
from part 2
principal =RS 5000 rate=25/4%p.a. time= 2 years
simple interest= 5000×25×2/100×4=RS 625
amount= principal +simple interest
=5000+625=RS 5625
profit=RS 5625 -RS 5400=RS 225 /-ans