Question

Rita borrows Rs. 5000 for 2 years at 4 % p. a. simple interest . She immediately lends it to Roshini at 6¼% p. a. for 2 years .Find her profit in this transaction per year.​

Answer 1

Given :-

• Rita borrows Rs5000 for 2 years at

4% p.a

• She immediately lend it to Roshini at 6¼% p. a.

Solution :-

Case 1

Here,

Principal = Rs5000

Time = 2 years

Rate = 4%

As we know that,

Simple interest = Principal * Rate * Time / 100

Put the required values,

SI = 5000 * 2 * 4 / 100

SI = 50 * 2 * 4

SI = 100 * 4

SI = Rs 400

Case 2 , For Lending

Principal = Rs5000

Time = 2 years

Rate = 6¼ % = 25/4 %

SI = Principal * Rate * Time / 100

Put the required values,

SI = 5000 * 25 * 2 / 100 * 4

SI = 50 * 50 / 4

SI = 25 * 25

SI = Rs 625

Thus,

Profit = 625 - 400 = Rs 225

Therefore,

Gaining per year = 225/2 = Rs 112.5

Hence, Her profit in this transaction per year is Rs112.5 $.$

Answer 2

Answer:

$\huge \red { \underline \mathfrak \purple{Given}}$

• Rita borrows Rs5000 for 2 years at

4% p.a

• She immediately lend it to Roshini at 6¼% p. a.

$\huge \red{ \underline { \underline \mathfrak \purple{Solution}}}$

Case 1

Here,

Principal = Rs5000

Time = 2 years

Rate = 4%

As we know that,

Simple interest = Principal * Rate * Time / 100

Put the required values,

SI = 5000 * 2 * 4 / 100

SI = 50 * 2 * 4

SI = 100 * 4

SI = Rs 400

Case 2 , For Lending

Principal = Rs5000

Time = 2 years

Rate = 6¼ % = 25/4 %

SI = Principal * Rate * Time / 100

Put the required values,

SI = 5000 * 25 * 2 / 100 * 4

SI = 50 * 50 / 4

SI = 25 * 25

SI = Rs 625

Thus,

Profit = 625 - 400 = Rs 225

Therefore,

Gaining per year = 225/2 = Rs 112.5

Hence, Her profit in this transaction per year is Rs112.5