A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediate

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Question: 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.

Options are:

A.     Rs. 112.50
B.     Rs. 125
C.     Rs. 150
D.     Rs. 167.50

Correct answer is:

A.     Rs. 112.50