Suresh borrows Rs. 10,000 for 2 years at 4 % p.a. simple interest. He lends it to Ramesh at 6 % p.a. for 2 years. Find his gain in this transaction per year.
Pick
A) Rs. 150 B) Rs. 200 C) Rs. 400 D) Rs. 450 E) None of these
Explanation:   Given:   We have to calculate the gain in 2 years.   1) In case of Suresh   S.I.(10000 × 4 × 2)/100= Rs. 800   2) In case of Ramesh   S.I.(10000 × 6 × 2)/100= Rs. 1200   Suresh has a pay a simple interest of Rs. 80 to the person from whom he borrowed Rs. 1000 and Ramesh has to pay Rs. 120 to Suresh.   Hence, gain in 2 years = 1200 – 800 = Rs. 400   But we are asked to find gain of Suresh per year. Therefore,   Gain in 1 year = 400 / 2 = Rs. 200   ANSWER IS Rs. 200
<result>B</result>
Suresh borrows Rs. 10,000 for 2 years at 4 % p.a. simple interest. He lends it to Ramesh at 6 % p.a. for 2 years. Find his gain in this transaction per year.