Question

Mr Gupta borrowed 10,000 from his friend Mr Malik at 10% p.a. simple interest for 3 years. He lent this
money to Mr Goyal at double the rate for the same duration but compounded it annually. Find his gain after
3 years.​

Answer 1

Step-by-step explanation:

After 3 years:

Amount Gupta has to give Mallik

si = pnr

p=10000, n=3yrs, r=10%

=10000×3×10% = 10000×3×0.1 = 3000

Amount = si +p = 10000+3000=13000

Amount Goyal has to give to Gupta

A = p(1+r)ⁿ

p=10000, r= 2×10%=20% , n=3

A = 10000(1+20%)³

=10000×1.2³

= 17280

gain to Gupta after 3 years

= 17280-13000 = 4280