Question

6. Rohit borrows 86000 from Arun for 2 years at 5% per annum simple interest. immediately lends out his money to Akshay at 5% compound interest
anually for the same period. calculate rohit's profit in the transaction at the end of
2 years.​

Answer 1

$\huge\star\underline\mathfrak\purple{Answer}$

86,000 at 5% S.I for 2 years.

S.I = P*R*T/100 = 86000*5*2/100 = 8600 Rs.

86000 at 5% C.I for 2 years

C.I for 1st year = 86000*5*1/100 = 4300

A = P + C.I = 86000 + 4300 = 90,300

This becomes the P for 2nd year

90,300 at 5% 

C.I for second year = 90300 * 5 * 1/100 =  4515

Total C.I = 4300 + 4515 = 8815 Rs.

Rohit has to pay Arun Rs.8600

But Rohit receives from Akshay Rs. 8815

Hence Rohit's profit = 8815 - 8600 = Rs. 215

Hope it helps.

Answer 2

Step-by-step explanation:

86,000 at 5% S.I for 2 years.

S.I = P*R*T/100 = 86000*5*2/100 = 8600 Rs.

86000 at 5% C.I for 2 years

C.I for 1st year = 86000*5*1/100 = 4300

A = P + C.I = 86000 + 4300 = 90,300

This becomes the P for 2nd year

90,300 at 5%

C.I for second year = 90300 * 5 * 1/100 = 4515

Total C.I = 4300 + 4515 = 8815 Rs.

Rohit has to pay Arun Rs.8600

But Rohit receives from Akshay Rs. 8815

Hence Rohit's profit = 8815 - 8600 = Rs. 215

Hope it helps.