Q. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6.25% p.a for 2 years. Find his gain in the transaction per year.

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

Correct Answer: A