sreedhar borrows 5000 from UCB for 2 years at the rate of 4% per annum ,Simple interest.On the same day he lends money to a farmerat 8% pa for 2 yrs .Find the annual gain

Here P=5000t=2r=4%SO simple interest = Prt100=5000×4×2100=400Now he lends on the same day at the rate of 8% for 2 year so, Simple interest on this=Prt100=5000×8×2100=800Now gain in two year=800-400=400So annual gain=4002=200

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