Question

6. Sudhir lent 2,000 at compound interest at 10% payable yearly, while Prashant lent*2,000 at compound
interest at 10% payable half-yearly. Find the difference in the interest received by Sudhir and Prashant
at the end of one year.​

Answer 1

Solution:

We know,

Amount (A) in CI is given as:

A = P(1 + r/n)^(nt)

P is the Principal money

R is the rate percentage

t is time period

n is number of times interest is compounded per unit t

For Sudhir,

A = 2000(1 + 0.10)^1

= 2000(1.1)

= Rs 2200

CI = A-P

= Rs (2200-2000)

= Rs 200

For Prashant,

A = 2000(1 + 0.10/2)^(1*2)

= 2000(1.05)^2

= Rs 2205

CI = A-P

= Rs (2205-2000)

= Rs 205

Difference in interests = Rs 205- Rs 200

= Rs 5

Rs 5 is the answer.

Answer 2

rupees five is your answer