Sachin borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends money to Rahul at 25/4% p.a. for 2 years. Find the gain of one year by Sachin. Pick:
A) 110.5
B) 111.5
C) 112.5
D) 113.5
E) None of these
Explanation:   Two things need to give attention in this question, First we need to calculate gain for 1 year only.   Second, where we take money at some interest and lends at other, then we use to subtract each other to get result in this type of question. Lets solve this Simple Interest question now.   Gain in 2 year = [(5000×25/4×2/100)−(5000×4×2/100)]   =(625−400)=225   So gain for 1 year = 225/2= 
<gadget id="calculator">225/2</gadget>
<output>225/2 = around 112.5</output>
112.50   Option 112.5
<result>C</result>
Sachin borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends money to Rahul at 25/4% p.a. for 2 years. Find the gain of one year by Sachin.