# A person borrows 5000 Rs. For 2 years at 4% per annum simple interest. He immediately lends it to another person at $latex 6\frac{1}{4}\%&s=1$ per annum simple interest for 2 years. His gain in this transaction is :

A person borrows 5000 Rs. For 2 years at 4% per annum simple interest. He immediately lends it to another person at $latex 6\frac{1}{4}\%&s=1$ per annum simple interest for 2 years. His gain in this transaction is :

[A]112.50 Rs.

[B]150 Rs.

[C]225 Rs.

[D]450 Rs.

**225 Rs.**

**Case: I**

$latex SI = \frac{5000\times 2\times 4}{100} = 400\ Rs.&s=1$

**Case: II**

$latex SI = \frac{5000\times 25\times 2}{100\times 4} = 625\ Rs.&s=1$

∴ Gain = (625 – 400) = 225 Rs.

Hence option [C] is correct answer.