kapil borrowed rs 16000 at 17.5% per annum simple interest. on the same day he lent it to Vipul at the same rate but compound annually . what does he gain at the end of two years
Answers
Answered by
5
Step-by-step explanation:
Amount to be paid by Kapil:
SI=
100
PRT
=16000×17.5×
100
2
=Rs5600
Amount gained by Kapil:
A=P(1+
100
R
)
n
A=16000(1+
100
17.5
)
2
A=50000(1.175)
2
A= Rs 22090
We know that:
CI=A–P= Rs 22090– Rs 16000= Rs 6090
Kapil’s gain in the whole transaction = Rs 6090– Rs 5600= Rs 490
Answered by
16
Principal (p) = Rs 16000 Rate
(r) = 17 ½ %
per annum = 35/2% or
17.5% Time (t) = 2 years
Interest paid by kapil = (PTR)/100 = (16000×17.5×2)/100
= Rs 5600 Amount gained by kapil: By using the formula,
A = P (1 + R/100)
n = 16000 (1 + 17.5/100)2
= 16000 (117.5/100)2 = Rs 22090 CI
= Rs 22090 – 16000
= Rs 6090
∴kapil total gain is = Rs 6090 – 5600 = Rs 490
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