Govind borrow ₹18000 at 10% simple interest. He immediately invents the money borrowed at 10% compound interest compounded half yearly. How much money does govind gain in one year?
Answers
Given :
✰ Govind borrow ₹18000 at 10% simple interest. He immediately invents the money borrowed at 10% compound interest compounded half yearly.
To find :
✰ How much money does govind gain in one year
Solution :
✰ As in the question Principal , Rate of intrerst and time is given. so, Firstly we will Find the Simple interest. and then Amount for the 1st year and then amount for the 2nd year. and After finding the amount of both years we will find The Compound interest.
Simple interest = P × R × T/100
Where,
- P = ₹ 18000
- R = 10%
- T = 1 year
→ Simple interest = 18000 × 10 × 1/100
→ Simple interest = 180 × 10
→ Simple interest = ₹ 1800
Compound Interest
For 1 Half year
Simple interest = P × R × T/100
Where,
- P = ₹ 18000
- R = 10%
- Time = 1/2 years
→ Simple interest = 18000 × 10 × 1/100 × 2
→ Simple interest = 180 × 5
→ Simple interest = ₹ 900
→ Amount = 18000 + 900
→ Amount = ₹ 18900
Now, For 2nd year
Simple interest = P × R × T /100
Where,
- P = ₹ 18900
- Rate = 10%
- Time = 1/2 years
→ Simple interest = 18900 × 10 × 1/100 × 2
→ Simple interest = 189 × 5
→ Simple interest = ₹ 945
→ Amount = 18900 + 945
→ Amount = ₹ 19845
Now, Let's Find Compound interest
→ Compound interest = 19845 - 18000
→ Compound interest = ₹ 1845
Govind gain in 1 year
Gain = 1845 - 1800
Gain = ₹ 45.
∴ Govind will gain ₹ 45 in one year.