Rakesh borrows ₹36000 at 9% per annum simple interest and at once lends the whole of it to a friend at 12% per annum simple interest. His gain over four and a half years (in ₹) is:

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4860. He gains the 3% difference in rate: 36000 × 3 × 4.5/100 = ₹4860. ₹1080 is one year's gain only, ₹5400 rounds the time up to 5 years, and ₹19440 is the whole interest he receives at 12% — from which he still has to pay the bank.

Rakesh borrows ₹36000 at 9% per annum simple interest and at once lends the whole of it to a friend at 12% per annum simple interest. His gain over four and a half years (in ₹) is:

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