A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6% p.a for 2 years. Find his gain in the transaction per year.
Choose the correct choice from the following choices
A) 100  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 6 % p.a for 2 years   Simple interest that he gets = PRT/100=5000×6×2/100=600   His overall gain in 2 years = Rs.600 - Rs.400 = Rs.200   His overall gain in 1 year = 200/2 = Rs.100   100nswer : Option 100
<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 6% p.a for 2 years. Find his gain in the transaction per year.