2018 · Q30
A person borrowed Rs. 5,000 at 5% rate of interest per annum and immediately lent it at 5.5%. After two years he collected the amount and settled his loan. What is the amount gained by him in this transaction?
Elementary MathematicsSimple and Compound Interest
- ARs. 25
- BRs. 50
- CRs. 100
- DRs. 200
Explanation
Simple interest at 5% on Rs. 5000 for 2 years is Rs. 500; at 5.5% it is Rs. 550. The gain is the difference, Rs. 50, option (B).