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

Step-by-step explanation:

P = 18000 , R = 10%

SI after one year = 18000*10/100 = Rs. 1800

Amount = 19800

When it's invested on CI, Rate for 6 months = 10/2 = 5%

CI for first 6 months = 18000 * 5/100 = Rs. 900

Amount for 6 months = 18900

CI for next 6 months = 18900 * 5/100 = Rs. 945

Total amount = 19845

His gain = 19845-19800

= Rs. 45

Answer 2

Answer:

Govind gain ₹ 45 in a year.

Step-by-step explanation:

Sum=Rs.18000

Rate =10%

Time =1 year

SI = P*R*T/100

⇒ $18000*10*1 /100$

⇒ $Rs = 1800$

Govind invest the sum at 10% compound interest half-yearly  

Then amount after 1 year

R=10% half-yearly = 10/2 = 5%

Time =1 year=2 half year

Amount = $P(1 + R/100)^T$

$18000(1 + 5/100)^2$

$1800 * 105/100 * 105/100$

$RS = 19845$

$C.I=Amount-Sum$

$19845-18000=Rs.1845$

Difference between C.I and S.I $=1845-1800=Rs.45$

Hence Govind Gain ₹45 per year