Radhelal borrowed ₹2,400@6 % p. a simple interest and invested this at 7.5 % p. a compound interest. If the transaction was for 2 years, what was his gain
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Answer:
profit = 86.4
Step-by-step explanation:
On simple interest,
principal = 2400
rate = 6 %
time = 2 years.
simple interest = (principal x rate x time) / 100
simple interest = (2400 x 6 x 2 ) /100
= 288.
On compound interest,
principal = 2400
principal = 2400rate = 7.5%
%time = 2
Amount = principal ( 1+ rate/100)^time.
= 2400 x (1+7.5/100)^2
= 2400 x (107.5 / 100) ^2
= 2400 x (1.075)^2
= 2400 x 1.156
= 2774.4
interest = Amount - principal
= 2774 - 2400
= 374.4
gain = 374.4 - 288
= 86.4
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