Question

compounded annually.
2. Rohit borrows 62500 from Arun for 2 years at 10% per annum, simple interest
immediately lends out this sum to Kunal at 10% per annum for the same period, compoun
annually. Calculate Rohit's profit in the transaction at the end of two years.
​

Answer 1

Answer:

Here, P = 62500 N = 2yrs R=10%

S.I. = PNR/100 = (62500 x 2 x 10)/100 = 12500 Rohit lents out Rs. 62,500, n = 2 yrs, r = 10%

Amount = 62500 * (1 + 10/100) ^ 2

= 62500(11²

= 75625

C.I. = 75625-62500 13125

Profit 13125 12500 = Rs. 625