Question

Abhay borrowed Rs. 16000 at
171% per annum simple
interest. On the same day, he
lent it to Gurmeet at the same
rate but compounded
annually. What does he gain
at the end of 2 years?​

Answer 1

Answer=90 Rs

Step by Step

Given:

Present value =₹16000

Interest rate =721%perannum= 15/2 \%$$

Time =2 years

To find the amount we have the formula,

Amount (A)=P(1+(r/100))n

where P is the present value, r is the rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴A=16000(1+(15/2)/100)2

⇒A=16000(1+3/40)2

⇒A=16000(43/40)2

⇒A=16000(1894/1600)

⇒A=₹ 18490

Now, we find the compound interest,

∴ Compound interest =A–P

=18490–16000=₹ 2490

Now we find the simple interest,

Simple interest (SI)=PTR/100

where P is principle amount, T is time taken, R is rate per annum

SI=(16000×(15/2)×2)/100

=160×15

=₹ 2400

Abhay's gain at the end of 2 years=(CI–SI)

=2490–2400

=₹ 90

Hope you find this helpful ❤

Answer 2

★ Given...✒

Present value = ₹ 16000

Interest rate =7 1/2 % per annum = 15/2

Time =2 years

★ To find...✒

The amount we have the formula,

Amount (A) = P(1 + (r/100)) n

★ Solution...✒

Now substituting the values in above formula we get,

∴A = 16000(1+(15/2)/100)²

➵ A = 16000(1+3/40)²

➵ A = 16000(43/40)²

➵ A = 16000(1894/1600)

➵ A = ₹ 18490

Now, we find the compound interest,

∴ Compound interest =A–P

➵ 18490 - 16000 = ₹ 2490

Now we find the simple interest,

Simple interest (SI)=PTR/100

SI = (16000 × (15/2) × 2)/100

➵ 160×15

➵ ₹ 2400

Abhay's gain at end of 2 years = (CI - SI)

➵ 2490 - 2400

➵ ₹ 90