A person borrows ₹ 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6 1/4% p.a. for 2 years. Find his gain in the transaction per year.

(a) ₹ 112.50. Explanation: Gain in 2yrs = [ (5000 × 25/4 × 2/100)- ((5000 × 4 × 2)/100)] =₹(625-400)=₹ 225.

A person borrows ₹ 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at… · ABC26GN4007

Subject: General Aptitude · Chapter: Simple Interest · Exam: S.S.C. 2005

A person borrows ₹ 5000 for 2 years at 4\% p.a. simple interest. He immediately lends it to another person at $6 \frac{1}{4} \%$ p.a. for 2 years. Find his gain in the transaction per year.

(a)₹ 112.50

(b)₹ 125

(c)₹ 150

(d)₹ 167.50

Answer

Answer (as printed): A

Explanation

$$\begin{aligned} \text { Gain in 2yrs } & =\left[\left(5000 \times \frac{25}{4} \times \frac{2}{100}\right)-\left(\frac{5000 \times 4 \times 2}{100}\right)\right] \\ & =₹(625-400)=₹ 225 . \end{aligned}$$

Explanation as extracted from the printed page; notation may be imperfect.

Study loop for Simple Interest

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