Question

Mewa Lal borrowed Rs 20000 from his friend Rooplal at 18% per annum simple
interest. He lent it to Rampal at the same rate but compounded annually. Find his
gain after 2 years.
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Answer 1

Given :-

Amount borrowed from his friend = Rs. 20000

Rate per annum = 18%

He lent it to Rampal at the same rate but compounded annually.

To Find :-

Mewa Lal's gain after 2 years.

Solution :-

We know that,

• p = Principle
• r = Rate
• t = Time

Given that,

Principal (p) = Rs. 20000

Rate (r) = 18%

Time (t) = 2 years

By using the formula,

Interest amount Mewa lal has to pay,

$\underline{\boxed{\sf Simple \ interest =\dfrac{P \times T \times R}{100} }}$

Substituting their values, we get

$\sf Simple \ Interest=\dfrac{(2000 \times 18 \times 2)}{100}=7200$

Interest amount Rampal has to pay to Mewa lal,

By using the formula,

$\underline{\boxed{\sf A=P \ \bigg( \dfrac{1+R}{100} \bigg)^{n}}}$

$\sf =2000 \ \bigg( \dfrac{1+18}{100} \bigg)^{2}$

$\sf = 2000 \ \bigg( \dfrac{118}{100} \bigg)^{2}$

$\sf =Rs. \ 27848 - 20000 \ (principal \ amount)$

$\sf = Rs. \ 7848$

∴ Mewa lal gain = Rs. (7848 – 7200) = Rs. 648

Therefore, his gain after 2 years is Rs. 648

Answer 2

Given :

★ Mewa Lal borrowed Rs 20000 from his friend Rooplal at 18% per annum simple interest. He lent it to Rampal at the same rate but compounded annually.

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Find :

★ What is the gain after 2 years.

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Using formula :

★ Simple interest = Principal × Rate × Time/100.

★ Overall profit = Profit - Simple interest.

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Calculations :

→ Interest = 20000 × 18 × 2/100

→ Interest = 7200ㅤㅤ

★ Therefore, 7200 is the interest he has to pay.

ㅤㅤ

Finding his profit after two years :

→ 20000 (1 + 18/100)² - 20000

→ 27848 - 20000

→ 7848

★ Therefore, 7848 is his profit as interest after talking loan.

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Finding his overall profit :

→ 7848 - 7200

→ 648

★ Therefore, 648 is his overall profit.