Question

Mala borrows a sum of ₹ 50,000 from Harsha at a simple interest of 8% per annum. She lends
the same amount to Riddhi at the same rate of interest compounded annually. Calculate
Mala’s gain or loss after 2 years.

Answer 1

Answer:

loss

Step-by-step explanation:

p = 50000

R = 8

T = 2

Amount to be paid by Harsh, A = p[ 1 + RT/100 ]

A= 50000[1 + 8*2/100]

A=50000(100+16)/100

A=500(116)

A=58000

Amount to be paid by Riddhi , A = P[1 + R/100]^(nT)

A= 50000[ 1 +0.08] ^ ( 1 *2 )        { n=1 as compounded annually }

A= 50000* 1.08*1.08

A = 58320

So Mala has to pay 320 rupees loss.