Question

Mahesh borrowed rupees 16000 at 7 1/2% 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??

Answer 1

Given that Mahesh borrowed 16000 rupees at 7 1/2% per annum Simple interest.

P = 16000

R = 7 1/2

    = 15/2%.


T = 2


We know that SI = PRT/100

                            = 16000 * 15 * 2/2 * 100

                            = 16000 * 15/100

                            = 2400.


We know that A = P + I

                            = 16000 + 2400

                            = 18400.



Given that he lent it to Gagan at the same rate. 

Given R = 15/2.

n = 2 years.

P = 16000.


We know that A = P(1 + r/100)^n

                           = 16000(1 + 15/200)^2

                           = 16000(215/200)^2

                           = 16000(43/40)^2

                           = 16000 * 1849/1600

                           = 10 * 1849

                           = 18490.



Therefore the gain = 18490 - 18400

                                = 90.



Hope this helps!

Answer 2

I HOPE THIS WILL HELP YOU CLEARLY....