Question

15 Vikram borrowed 20000 from a bank at 10% per annum simple interest. He lent it
to his friend Venkat at the same rate but compounded annually. Find his gain after
5/2 years.
interest If he renays 1200 at the end of each​

Answer 1

Answer:

410

Step-by-step explanation:

First case

Principal= 20000

Rate = 10% p.a

Period = 2

2

1

=5/2years

We know that

Simple interest = Prt/100

Substituting the values

=(20000×10×5)/(100×2)

= 5000

Second case -

Principal = 20000

Rate = 10% p.a.

Period = 2

2

1

years at compound interest

We know that

Amount = P(1+r/100)

n

Substituting the values

=20000(1+10/100)

2

(1+10/(2×100))

2

By further calculation

= 20000×11/10×11/10×21/20

= 25410

Here

Compound interest = A - P

Substituting the values

= 25410−20000

= 5410

So his gain after 2 years = CI - SI

We get

= 5410−5000

= 410

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