Question

Manoj took a loan of RS. 24000 from a financer at 15% p.a. simple interest. He sent it to Mukesh at the same rate of compound interest. Find his gain after 3years

Answer 1

Dear Student,

◆ Answer -

Rs 1701

● Explanation -

Total by simple interest is -

Total = P (100 + r×t) / 100

Total = 24000 (1 + 3×15/100)

Total = 24000 × 1.45

Total = Rs 34800

Total by compound interest is -

Total = P (1 + r)^t

Total = 24000 (1 + 15/100)^3

Total = 24000 × 1.520875

Total = Rs 36501

Total gain after 3 years is 36501-34800 = Rs 1701.

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