Question

A man borrowed Rs 5000 from a money lender at 5% S.I. for 2 years. He immediately lent it to his friend at the same rate but compounded annually. Find his gain after 2 years.​

Answer 1

gain in 2 years =Rs.[(5000*254*2100)−(5000*4*2100)]gain in 2 years =Rs.5000*254*2100-5000*4*2100  

= Rs. (625 - 400) 

= Rs. 225 

 gain in 1 year =Rs.(2252)=112.50