Question

Mr. Mehta borrows Rs 5,000 from a bank for a period of 2 years at an interest of 4% per annum.
He immediately lends the entire amount out to his friend at an interest of 6% per annum for a period of 2 years.
How much does he gain in the transaction?

Answer 1

Answer:

Mehta borrows = 5000/-

Step-by-step explanation:

1. Rate of interest =4%=4/100. Time period=2years. total amount (I)=PTR/100. I=5000x2x4/100. Interest for 2 yrs = 400. Total amount he need to give = actual amount +interest=5000+400=5400/-. Now , Rate of interest in secong case= 6%=6/100. I=PTR/100=5000x2x6/100=600. he taken from his dhost=5000+600=5600. I2-I1=5600-5400=200/- So he gain 200/-

Answer 2

Answer:

Mehta borrows = 5000/-

Step-by-step explanation:

Rate of interest =4%=4/100. Time period=2years. total amount (I)=PTR/100. I=5000x2x4/100. Interest for 2 yrs = 400. Total amount he need to give = actual amount +interest=5000+400=5400/-. Now , Rate of interest in secong case= 6%=6/100. I=PTR/100=5000x2x6/100=600. he taken from his dhost=5000+600=5600. I2-I1=5600-5400=200/- So he gain 200/-