A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6 p.a. for 2 years. Find his gain in the transaction per year.

Asked by Topperlearning User | 4th Jun, 2014, 01:23: PM

Expert Answer:

SI(borrowing) =

SI(lending) =

 

Gain= Rs (625 - 400) = Rs 225

 

Therefore, gain per year

Answered by  | 4th Jun, 2014, 03:23: PM