A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 8% p.a for 2 years. Find his gain in the transaction per year.  Choose the correct choice from the following answers
A) 167.5	B) 150	C) 200	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 8% p.a for 2 years   Simple interest that he gets = PRT/100=5000×8×2/100=800   His overall gain in 2 years = Rs.800 - Rs.400 = Rs.400   His overall gain in 1 year = 400/2 = Rs.200   Answer : Option 200
<result>C</result>
A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 8% p.a for 2 years. Find his gain in the transaction per year.