Question

A person borrows Rs.2500 at 10% simple interest for 2 years and lends the money for the same period at the same rate of compound interest.Then his gain is

Answer 1

CI IS 3025 AND SI IS 3000
THEN 3025-3000 IS 25
SO HE GAINS 25 RUPEES

Answer 2

Simple interest = $2500×10×2/100=$500
Amount= $(2500+500)=$3000
In Compound Interest
Amount = $2500 ( 1 +10/100) power 2
=$2500 ×110/100 ×110/100
=$3025
His gain is $(3025-3000)=$25