A person borrows ₹5,000 for 2 years at 4% per annum

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A person borrows ₹5,000 for 2 years at 4% per annum simple interest. He immediately
lends it to another person at 6 1 % per annum simple interest for 2 years.
4
His gain in the transaction is

Here , P = ₹ 5000 , R = 4% , T = 2 years
Case I :

SI =	5000 × 2 × 4	= ₹ 400
	100

Case II :

Here , P = ₹ 5000 , T = 2 years , R =	25	%
	4

SI =	5000 × 25 × 2	= ₹ 625
	100 × 4

∴ Gain = ₹ (625 – 400) = ₹ 225

lends it to another person at 6	1	% per annum simple interest for 2 years.
	4