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.

• Gain in 2 years =
  [(5000*6*2)/100]-[(5000*4*2)/100]
  600-400=200
  Gain in 1 year =(200/2)=100 rs(ans)
• 11 years agoHelpfull: Yes(11) No(3)
• gain in the transaction per year 2% of 5000 = 2*5000/100 = Rs 100
• 11 years agoHelpfull: Yes(2) No(3)
• one year interest for rs 5000 when 4% is=12*200(interest)=Rs.2400
  one year interest for rs 5000 when 6% is=12*300(interest)=Rs.3600
  
  So the gain is 3600-2400
  gain is Rs.1200
• 11 years agoHelpfull: Yes(1) No(3)
• Ist case: s.i=5000*2*4/100=400
  2nd case:s.i=5000*6*2/100=600
  the profit/gain for two years=200
  therefore,for one year it would be Rs 100.
• 11 years agoHelpfull: Yes(1) No(1)
• for 4% borrow interest :
  first year - 5000 + 200(4% interest of 5000)=5200
  second year 5200 + 208(4% interest of 5200)=5408
  
  for 6% lend interest :
  first year - 5000 + 300(6% interest of 5000)=5200
  second year 5300 + 318(6% interest of 5300)=5618
  
  so diff in 6% lend - 4% borrow =5618-5408= 210
• 10 years agoHelpfull: Yes(0) No(1)
• According to question
  first condition person borrows money so : p=5000,r=4%,t=2
  so SI=p*r*t/100
  SI=5000*4*2/100=>400
  Again person lends money
  SI=5000*6*2/100=>600
  so gain=lends-borrows
  gain=600-400=>200
  
  
• 10 years agoHelpfull: Yes(0) No(0)