A person borrows Rs. 5000 for 2 years at 4% per annum simple interest. He immediately lends it to another person at 6.25% per annum for 2 years. Find his total gain in the transaction per year.
Options:
- A: Rs. 100
- B: Rs. 112.5
- C: Rs. 125
- D: Rs. 225
Related Practice Questions:
- A sum of ₹4000 is invested at compound interest for 2 years at a rate of 10% per annum. What will be the total amount at the end of 2 years?
- At what rate of simple interest per annum will a sum of money double itself in 8 years?
- The difference between the compound interest and simple interest on a certain sum of money for 2 years at 5% per annum is ₹25. Find the sum.
- The study of living organism :
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