A person borrows 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 61⁄4 % p.a. for 2 years. Find his gain in the transaction per year. Choose the correct choice:
A) 112.50 B) 125 C) 150 D) 167.5 E) None of these
Gain in 2 years   = [(5000×25/4×2/100)−(5000×4×2/100)]   = (625 – 400) = 225.   ∴ Gain in 1 year = (225⁄2) = 112.50   112.50nswer 112.50
<result>A</result>
A person borrows 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 61⁄4 % p.a. for 2 years. Find his gain in the transaction per year.