Question

Abhay borrowed rupees 16000 at 7 1/2per 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:

For simple interest;

Principal amount; P = Rs.16000

Rate of interest; R = 152% p.a.

Time; T = 2 years

So S.I. = P×R×T100 = 16000×15×22×100 = Rs.2400

So, total amount Abhay has to pay = Rs.16000 + Rs.2400 = Rs.18400

Considering the given sum when it is compounded annually;

So, Amount accumulated at the end of 2 years = P(1+R100)T = 16000(1+152×100)2 = 16000(4340)2 = 16000×4340×4340 = Rs.18490

This means Amount received by Abhay from Gurmeet = Rs.18490

Therefore net gain by Abhay = Rs.18490 - Rs.18400 = Rs.90

Answer 2

$\large\green{\textbf{\underline{\underline{Here\:is\:your\:Answer :- }}}}$

Present value = ₹ 16000

Interest rate = 7 ½ % per annum = 15/2 %

Time =2 years

Now find compound interest,

To find the amount we have the formula,

Amount (A) = P (1+(R/100))^n

Where P is present value, r is 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

∴ Compound interest = A – P

= 18490 – 16000 = ₹ 2490

Now 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 gains at the end of 2 year= (CI – SI)

= 2490 – 2400

= ₹ 90

hope it helps

follow me ❤