John borrowed Rs.20,000 at 9% per annum simple interest. On the same day he lent it to james at
the same rate but compounded annually. What does he gain at the end of 2 years?
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It's an easy question and I think that u should try it by your own. I can give you some hints.
Here, principal =₹20,000
Rate/annum=9%
Time =2 year
So now calculate the SI using PRT/100
The SI u get is the interest paid by John to the person from whom he borrowed.
Now keeping the principal, Rate & time same calculate CI paid to John by the person whom he lent.
As we know that if P R T are same then CI>SI
Therefore calculate the gain earned by John by subtracting SI from CI.
Suggestion: first try a no. of times by yourself before asking for a help. Ask only when you are helpless.
Regards,
Gaurav
Here, principal =₹20,000
Rate/annum=9%
Time =2 year
So now calculate the SI using PRT/100
The SI u get is the interest paid by John to the person from whom he borrowed.
Now keeping the principal, Rate & time same calculate CI paid to John by the person whom he lent.
As we know that if P R T are same then CI>SI
Therefore calculate the gain earned by John by subtracting SI from CI.
Suggestion: first try a no. of times by yourself before asking for a help. Ask only when you are helpless.
Regards,
Gaurav
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