Question

A person borrowed rs 25000 at 15% simple interest for 3 years and he lent it to his friend for 3 years at 16% per annum compound interest . Find his profit​

Answer 1

Answer:

Given:- P=25000, R=15% T=3

Now, first we find the simple interest from SI=P×R×T these formula

so,

SI= 25000×15×3/100

SI= 11250

Now, A/C

:- P=25000 R=16% T=3

Now, we find compound interest from A=P(1+r/100)`n

so,

A= 25000(1+16/100)`3

A= 25000×116/100×116/100×116/100

A=39022.4

CI=A-P

CI= 39022.4-25000

CI=14022.4

Profit= 14022.4-11250

Profit= 2772.4

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