Question

Pranav borrowed Rs. 25,000 from Harsh at 15 % per annum at simple interest. On the same day, he lent it to Vinay at the same rate but compounded annually and paid the amount to Harsh after two years. What does he gain in this transaction ?

Answer 1

Principal= 25000

Rate = 15% p.a

Time 2 yrs

Simple interest = 25000× 15 × 2 ÷ 100 = Rs 7, 500

Rajesh

P = 2500

rate = 15 % pa

Time 2 yrs

CI = 33062.50

Gain = 33062.5 subtracted by 750 = 25562.50