Question

Avinash borrowed ?32000 from his friend Gaurav at the rate of 8% per annum simple interest for 3 years. He lent his money to vivek at the same rate but compounded anually. Find his gain after 3 years.

Answer 1

$\huge\boxed{\texttt{\fcolorbox{Red}{aqua}{Hey Mate!!!}}}$

For Avinash from Gaurav

P = 32000
R = 8%
T = 3 Years
SI = PRT/100
$= \frac{32000 \times 8 \times 3}{100} \\ = 7680$
So SI = ₹ 7680

NOW AVINASH LENT HIS MONEY TO VIVEK

P = 32000
R =8%p.a
T = 3 years = 3= n for compounded annually

A = P(1+ R/100)^n
$= 32000 \times (1 + \frac{8}{100} ) {}^{3} \\ = 32000 \times ( \frac{27}{25} ) {}^{3} \\ = \frac{32000 \times 27 \times 27 \times 27}{25 \times 25 \times 25} \\ = 40310.78$
CI = A - P. = 40310.78- 32000

= ₹ 8310.78

SO Avinash get profit is
$= 8310.78 - 7680 \\ = 630.78$
Avinash profit is ₹ 630.78

Hope it helps you

Answer 2

For Avinash from Gaurav

P = 32000

R = 8%

T = 3 Years

SI = PRT/100

\begin{gathered}= \frac{32000 \times 8 \times 3}{100} \\ = 7680\end{gathered}

=

100

32000×8×3

=7680

So SI = ₹ 7680

NOW AVINASH LENT HIS MONEY TO VIVEK

P = 32000

R =8%p.a

T = 3 years = 3= n for compounded annually

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

\begin{gathered}= 32000 \times (1 + \frac{8}{100} ) {}^{3} \\ = 32000 \times ( \frac{27}{25} ) {}^{3} \\ = \frac{32000 \times 27 \times 27 \times 27}{25 \times 25 \times 25} \\ = 40310.78 \\\end{gathered}

=32000×(1+

100

8

)

3

=32000×(

25

27

)

3

=

25×25×25

32000×27×27×27

=40310.78

CI = A - P. = 40310.78- 32000

= ₹ 8310.78

SO Avinash get profit is

\begin{gathered}= 8310.78 - 7680 \\ = 630.78\end{gathered}

=8310.78−7680

=630.78

Avinash profit is ₹ 630.78

Hope it helps you