A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 5% p.a for 2 years. Find his gain in the transaction per year.  Select the correct option.
A) 50
B) 150
C) 225
D) 112.5
E) 212.5
Explanation :   The person borrows Rs. 5000 for 2 years at 4% p.a. simple interest   Simple interest that he needs to pay = PRT/100=5000×4×2/100=400   He also lends it at 5% p.a for 2 years   Simple interest that he gets = PRT/100=5000×5×2/100=500   His overall gain in 2 years = Rs.500 - Rs.400 = Rs.100   His overall gain in 1 year = 100/2 = Rs.50   50nswer : Option 50
<result>A</result>
A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 5% p.a for 2 years. Find his gain in the transaction per year.