Mahesh borrowed rs16000 at 15/2% per annum simple interest. on the same day ,he lent it to Gagan at the same rate but compounded annually. what does he gain at the end of 2 years.
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Answer:
He gain ₹ 90 at the end of two years.
Step-by-step explanation:
Simple Interest :-
Given, Principal = ₹16,000
Rate = 15/2 %
Time = 2 years
Simple Interest = P×R×T / 100
= 16,000×15×2 / 100×2
= 160 × 15 = 2,400
Amount = Principal + Interest
= 16,000 + 2,400 = 18,400
Compound Interest :-
Given, Principal = ₹16,000
Rate = 15/2 % = 7.5 %
Time = 2 years
A = P(1+R/100)²
= 16,000(1+7.5/100)²
= 16,000(1+75/1000)²
= 16,000(1+3/40)²
= 16,000×43/40×43/40
= 10×43×43 = 18,490
Gain = 18,490 - 18,400 = ₹90 (ans).
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