A person borrows Tk. 5000 for 2 years at 4% p.a. simple interest . He immediately lends to another person at 614% p.a. for 2 years .Find his gain in the transaction per year .

A Tk. 112.50
B Tk. 125
C TK. 150
D TK. 167.50

Correct Answer: Tk. 112.50

Gain in 2 years = 5000×254×2100 - 5000×4×2100 = 625 - 400 - 225 ∴ Gain in 1 years = (225÷2) = 112.50 Tk.
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