Simple Interest Practice Test 2

Question : 6 of 40

Marks: +1, -0

Ram borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at

6 1/ 4 %

p.a. for two years. What is his gain in this transaction per year?

Solution:

Reqired gain

={5000×25×1}/{100×4}- {5000×4×1}/100

=312.50-200

= Rs. 112.50

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