Question

Ahmed lent rs. 3000 to his friend, Ishaq, for 2 years at 6% p.a. simple interest. How much more would he have gained had he lent it at compound interest payable annually (rate and time being the same).​

Answer 1

Answer:

he had gained Rs 360 more after two years.

but if he had lent it on compound interest he gain Rs.370.8 or 371.

If he lent on compound he will gain Rs. 11 more.

Step-by-step explanation:

I = P×r×t

here I= interest (?)

P= Principal amount(Rs. 3000)

r = rate of interest (6%)

and t= time period (2 years)

I= 3000×0.06×2. (6%= 6/100= 0.06)

= 360

and total amount = P+I = 3000+360=3360

A= P(1+r/n)^nt

where A = total amount he get(?)

P=principal (Rs. 3000)

r= rate of interest (6%)

n= number of compounding(1)

t=time(2 years)

A= 3000(1+0.06/1)^1×2. (6%= 6/100 =0.06)

3000(1.06)^2=3000×1.1236

=> 3370.8

A= P+I

I = A - P = 3370.8-3000= 370.8 or 371

I= 371

Answer 2

I = P×r×t

here I= interest (?)

P= Principal amount(Rs. 3000)

r = rate of interest (6%)

and t= time period (2 years)

I= 3000×0.06×2. (6%= 6/100= 0.06)

= 360

and total amount = P+I = 3000+360=3360

A= P(1+r/n)^nt

where A = total amount he get(?)

P=principal (Rs. 3000)

r= rate of interest (6%)

n= number of compounding(1)

t=time(2 years)

A= 3000(1+0.06/1)^1×2. (6%= 6/100 =0.06)

3000(1.06)^2=3000×1.1236

=> 3370.8

A= P+I

I = A - P = 3370.8-3000= 370.8 or 371

I= 371