Home / Arithmetic Aptitude / Simple Interest :: Discussion

### Discussion :: Simple Interest

1. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6$$\frac { 1 } { 4 }$$% p.a for 2 years. Find his gain in the transaction per year.

2.  A. Rs. 112.50 B. Rs. 125 C. Rs. 225 D. Rs. 167.50

Explanation :

Gain in 2 years
 = Rs. 5000 x $$\frac { 25 } { 4 }$$ x $$\frac { 25 } {100 }$$ - $$[\frac { 500*4*2 } {100} ]$$
= Rs. (625 - 400)
= Rs. 225.

 Gain in 1 year = Rs.[ $$\frac { 225 } { 2 }$$ ] = Rs. 112.50

Be The First To Comment