Question

Anand borrowed Rs. 25,000 at 15% simple interest for 3 years and he lent to his friend for 3 years at 16 % per annum compound interest. Find his profit.

Answer 1

Answer:

Anand earned a profit of amount 2772.40/-

Step-by-step explanation:

Anand borrowed Rs.25000 at 15% Simple Interest for 3 years

Therefore he would pay Interest equal to

$25000*\frac{15*3}{100}=250*45=11250/-$

He lent the amount at 16% compound interest  for 3 years

$25000*(1+\frac{16}{100})^3 = 25000*(\frac{116}{100})^3=25000*(\frac{29}{25})^3\\\\\implies \frac{8}{5}*(29)^3=39022.4$

Therefore Interest earned 39022.4 - 25000 = 14022.40/-

Therefore profit that Anand earned = 14022.40 - 11250 = 2772.40/-