a person borrows rs . 5000 for 2 years at 4 % p . a . simple interest . he immediately lends it to another person at 8 % p . a for 2 years . find his gain in the transaction per year .
explanation : the person borrows rs . 5000 for 2 years at 4 % p . a . simple interest simple interest that he needs to pay = prt / 100 = 5000 × 4 × 2 / 100 = 400 he also lends it at 8 % p . a for 2 years simple interest that he gets = prt / 100 = 5000 × 8 × 2 / 100 = 800 his overall gain in 2 years = rs . 800 - rs . 400 = rs . 400 his overall gain in 1 year = 400 / 2 = rs . 200 answer : option c
divide(subtract(divide(multiply(multiply(5000, 8), 2), const_100), divide(multiply(multiply(5000, 4), 2), const_100)), 2)