Question

9. Govind borrows 18,000 at 10% simple
interest. He immediately invests the money
borrowed at 10% compound interest
compounded half-yearly. How much money
does Govind gain in one year ?
without using the formula​

Answer 1

Answer:

Step-by-step explanation:

Sum=Rs.18000

Rate =10%

Time =1 year

S.I=  PRT/100

​  

 ⇒ (18000×10×1) /100

​  

=Rs.1800

Govind invest the sum at 10% compound interest half-yearly  

Then amount after 1 year

R=10%

half-yearly=  10 /2

​          =5%

Time =1 year=2 half year

amount=P(1+  R/100)to the power T

​        ⇒18000(1+  5/100)to the power

 

           ⇒18000×  105/100*105/100

​  

          ⇒Rs.19845

C.I=amount−Sum

   =19845−18000=Rs.1845

Difference between C.I  and S.I=1845−1800=Rs.45

Hence Govind gain Rs.45 in a year

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