Question

29. A man borrowed Rs. 1250 for two years at 4% per annum and immediately lent
it at compound interest for the same period and at the same rate, his gain will
be:
(a) 3.50
(b) 3
(c) 2.50 (d) *2​

Answer 1

Step-by-step explanation:

Principal=1250

Time=2 years

Rate=4%

N=1(no. of times amount compounded per year)

A=P(1+R%/N)^t*n

=1250(1+4%/1)^2*1

=1250(1+4/100)^2

=1250×104/100×104/100

=13520000/10000

=1352

Gain%=1352-1250/1250×100

=102/1250×100

=8.16

that's how should the answer be..

Hope it helps..

Good luck, Thanks

Answer 2

The gain will be =Rs 2

Step-by-step explanation:

Borrowed money=P=Rs 1250

Rate of interest=r=4%

Time= 2 years

S.I=$\frac{P\times r\times t}{100}$

Where, P=Principle money

r=Rate of interest(in %)

t=Time (in years)

Using the formula

$S.I=\frac{1250\times 4\times 2}{100}=100$

Amount=S.I+P=100+1250=Rs 1350

Amount for compound interest

Amount=$P(1+\frac{r}{100})^n$

Where n=Time (in years)

Using the formula

Amount=$1250(1+\frac{4}{100})^2=$Rs 1352

Gain for years=1352-1350=Rs 2

Hence, the gain will be =Rs 2

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https://brainly.in/question/1678709:Answered by Siddhartharao