Question

Ahmed lent Amir Rs 8000 at simple interest for 3 years at the rate of 5% per
annum. How much more would he have gained, had he lent it at compound
interest?​

Answer 1

Answer:

Ahmed could have gained 61 rupees more, if had given had given in compound interest.

Solution:

Given that Ahmed lent amir Rs8000 at simple interest for 3 years at the rate of 5% per annum

Simple Interest calculation:

Principal = 8000

Rate of interest = 5%

Time = 3

Formula:

S.I=\frac{p\times n\times r}{100}S.I=

100

p×n×r

Where , "p" is the principal and "n" is the number of years and "r" is the rate of interest

Substituting the values in formula,

\begin{lgathered}S.I = \frac{8000 \times 3 \times 5}{100}\\\\S.I = 80 \times 3 \times 5 = 240 \times 5\\\\S.I = 1200\end{lgathered}

S.I=

100

8000×3×5

S.I=80×3×5=240×5

S.I=1200

Compound Interest calculation:

Principal = 8000

Rate of interest = 5% compounded annually

Time = 3

Formula:

C.I=P(1+\frac{R}{100})^n-PC.I=P(1+

100

R

)

n

−P

Substituting the values in formula,

\begin{lgathered}\Rightarrow C.I=8000(1+\frac{5}{100})^3-8000\\\\\Rightarrow C.I=9261-8000\\\\\Rightarrow C.I=1261\end{lgathered}

⇒C.I=8000(1+

100

5

)

3

−8000

⇒C.I=9261−8000

⇒C.I=1261

Therefore, the difference between the interests:

1261 - 1200 = 61

Thus he could have gained 61 rupees more, if had given had given in compound interest.

Answer 2

Answer:

P = ₹8000

r = 5%

t = 3 years

Then

SI = prt/100 = 8000×5×3/100 = ₹1200

And

CI = P[(1+r/100)^n-1] = 8000[(1+5/100)^3-1] = ₹1261

So if he lent it at compound interest then he have gained (1261-1200) ₹61

Please make my answer brainliest....