Aptitude - Simple Interest - Discussion

Discussion Forum : Simple Interest - General Questions (Q.No. 14)
14.
A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6% p.a for 2 years. Find his gain in the transaction per year.
Rs. 112.50
Rs. 125
Rs. 225
Rs. 167.50
Answer: Option
Explanation:

Gain in 2 years
= Rs. 5000 x 25 x 2 - 5000 x 4 x 2
4 100 100
= Rs. (625 - 400)
= Rs. 225.

Gain in 1 year = Rs. 225 = Rs. 112.50
2

Video Explanation: https://youtu.be/zBjcwqIcmL4

Discussion:
49 comments Page 5 of 5.

Niranjan patil said:   6 years ago
(5000*25)/400 - (5000*4)/100 = 112.50.

Bhavya y J said:   2 decades ago
Where we taking this value 25/4 ?

Thara said:   9 years ago
Nice explanation. Thank you all.

Pooja said:   1 decade ago
Thanx Sumit..its really simple:)

Sachin said:   9 years ago
Nice solution. Thank you all.

Kareena said:   8 years ago
Why are we dividing 225/2?

Renuka Bhosale said:   5 years ago
How 25/4 is equal to 6/4?
(1)

Jaya prakash said:   1 decade ago
From where we got 25/4?

Kiran said:   9 years ago
Why we taking 25?


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