Question

beans, borrowed & 2010 from her friend
Nancy at 12% per annum simple Interest.
is to Andy at the same rate
but compounded annualy. Find her
gain after 2 years​

Answer 1

Step-by-step explanation:

GIVEN :-

Principal (p) = ₹2010

Rate(r)= 12%

Time (t) =2 year

TO FIND :-

Gain after 2 year

SOLUTION :-

$\large \sf \: case \: (i) : -$

When borrow from Nancy in Simple interest :-

Then

$\sf \: Simple \: interest = \frac{principal \times rate \times time}{100} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = \sf \frac{2010 \times 12 \times 2}{100} \\ = \sf \: 482.40$

Simple interest at 12% p.a is ₹482.40

$\large \sf \: case \: (ii) : -$

When borrowed from Andy at 12% p.a. in Compound interest

$\sf \: amount \: = p\bigg(1 + \frac{r}{100} \bigg)^{t} \\ \\ \sf = 2010 \bigg(1 + \frac{12}{100} \bigg ) ^{2} \\ \\ \sf \: \: \: = 2010 \times \frac{112}{100} \times \frac{112}{100} \\ \\ \sf = 2521.344 \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

Compound interest =Amount - Principal

Compound interest = 2521.344-2010

Compound interest =₹ 511.344

NOW GAIN OF Andy

$\sf \: gain \: = Compound \: \: interest - simple \: interest \\ = \sf 511.344 - 482.40 \\ \sf \: = 28.944$

Gain of Andy is ₹ 28.944

• Always use the formula of Amount to calculate Compound interest in ease.

Thank you.