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A person borrows Rs. 5000 for 2 year at 4% per annum at simple interest. He immediately lends it to another person at 6.25% per annum at simple interest for 2 years. What will be the amount gained by a person in the transaction per year?
Rs. 112.50
Rs. 125
Rs. 150
Rs. 167.50
Rs. 112.50
Practice and solve "A person borrows Rs. 5000 for 2 year at 4% per annum at simple interest. He immediately lends it to ..." for Electrical - Economics for Engineers. The correct answer is Option A: Rs. 112.50. Detailed step-by-step solution, conceptual clarity, and formulas on Examoogle.
Option **(a) **