Question

A borrowed ₹ 50,000 from B at 10% per annum simple intrest and lent it to C at the same rate but compounded annually . Find A's gain after 2 years​

Answer 1

Answer:

SI of 50000for 2 years=50000×0.1×2=10000

CI of 50000 for 2 years=50000(1+0.1)^2-50000

=50000×1.21-50000

=50000{1.21-1}=50000×0.21

gain=50000×0.21-10000

=10000(1.05-1)

=10000×0.05

=500