A person borrows Tk. 5000 for 2 years at 4% p.A. simple interest. He immediately lends it to another person at 6¹/₄% p. A. for 2 years. Find his gain in the transaction per year.

A Tk. 112.50

B Tk. 125

C Tk. 150

D Tk. 167.50

Correct Answer: Option A

first he provide to lenders=5000x2x4/100=400 tk he got from borrower=5000x25x2/100x4=625 tk so,gain=625-400=225 tk

A person borrows Tk. 5000 for 2 years at 4% p.A. simple interest. He immediately lends it to another person at 61/4% p. A. for 2 years. Find his gain in the transaction per year.