rama borrows some amount at 10 percent per anoum for 2y. if the difference of compound and simple intrests is rs.52.then find the principle amount
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this is a example
Step-by-step explanation:
Ram borrows Rs. 10000 for 2 years at 2% p.a simple interest. He immediately lends it to another person at 8¼% p.a for 2 years. Find his gain in the transaction per year.
Simple interest on Rs. 10,000 for 2 years at 2% = 10,000 × 2 × 2/100 = 100 × 4 = Rs. 400
Simple interest Rs. 10000 for 2 years at 8¼% = 10,000 × 2 × (33/4)/100 = 25 × 2 × 33 = Rs. 1,650
Total profit made by Ram = 1650 - 400 = Rs. 1250
Profit made by Ram each year = 1250/2 = Rs. 625
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