A person borrows ₹7,000 for 3 years at 5% p.a. simple interest. He immediately lands it to another person at $6\frac{1}{3}$% p.a for 3 years. Find his gain in the transaction per year.

₹93.33

We know ,

Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)

Total Gain transaction  = \(\frac{7000 ×19 × 3 }{100}\) - \(\frac{7000 ×3 × 5 }{100 × 3}\)  

=  1330 - 1050

= 280

Gain transaction per year = \(\frac{280 }{3}\) = 93.33