A person borrows TK. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6 1/4 % per annum for 2 years . Find his gain in the transaction per year.

A TK. 112.50
B Tk. 167.50
C TK.150
D TK. 225

Correct Answer: TK. 112.50

(614  - 4)% = (254 - 4)% = (25 - 164)% = 94%We know,I  =  Prn  = 5000×94×100×2 = TK. 225.'. Gain per year 2252 = 112.50 
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