Question

Govind borrows * 18,000 at 10% simple
interest. He immediately invests the money
borrowed at 10% compound interest
compounded half-yearly. How much money
does Govind gain in one year ?​

Answer 1

P=18000rs

r=10%

t=1 year

s.i. =p *r*t/100

18000*10*1/100=1800rs

compounded halfyearly

p =18000 rs

t=2 half years

r=5%

a=p[1+r/100]^t

=18000[1+5/100]^2

=18000[21/20]^2

=18000*21*21/400

=45*441=19845rs

c.i.=19845-18000=1845rs

money he gained =1845-1800=45rs

Answer 2

Principle=rs 18,000

Rate=10%

Time=1 year

S.I. =P×R×T/100

S.I. =18000×10×1/10

S.I. =rs 1800

Amount =P+S.I.

Amount =18000+1800

Amount = 19800

He invests the Money at 10 %rate compounded half yearly

Principle =18000

Rate =10%/2. =5%

Time =1 × 2= 2 half yearly

Amount =(1+r/100)to the power T× P

Amount =(1+5/100)²×18000

Amount =19845

I. =A-P

I. =19845-18000

I. =1845

C.I.-S.I. =Govind Profit

1845-1800 =Govind Profit

45=Govind Profit

therefore Govind profit is rupees 45