Simple Interest 46Q

46.	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.
	A. Rs. 112.50 B. Rs. 125 C. Rs. 150 D. Rs. 167.50

Answer: Option A

Explanation:

Gain in 2 years	= Rs. 5000 x 25 x 2 - 5000 x 4 x 2 4 100 100
	= Rs. (625 - 400)
	= Rs. 225.

Gain in 1 year = Rs.		225		= Rs. 112.50
		2