Question

37. Ashok borrowed Rs.20,000 at 12% simple interest for 3 years. On the same day he

lent that amount to Aakash at the same rate for the same period, but on compound

interest. How much does Ashok gain in the transaction?​

Answer 1

Answer:

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Answer 2

Answer:

Step-by-step explanation:

Simple Interest = P x T x R /100

                          =  20,000 x 12 x 3 /100   = 7,200

Compound Interest = P ( 1 +R/100)3

                                 =20,000 (1 + 12/100)3

                                  = 20,000 ( 100 + 12 /100 )3   cross multiplication

                                  =20,000 x 112/100 x112/100 x112/100

                                  = 28098.56

Difference = 28098.56 - 7200 = 20898.56