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Question
A person borrows ₹ 5000 for 2 yr at 4% per annum simple interest. He immediately lends it to another person at `6 1/4` per annum for 2 yr. Find his gain in the transaction per year.
Options
₹112.50
₹125
₹150
₹167.50
MCQ
Solution
₹112.50
Explanation :
Gain in 2 yr
= ₹`[((5000xx2xx25)/(100xx4))-((5000xx4xx2)/100)]`
= ₹(625 - 400) = ₹225
Gain in 1 yr = ₹`(225/2)` = ₹112.50
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Simple and Compound Interest (Entrance Exam)
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