Question

Ravi borrowed 25000 from Shishir at 15% per annum simple interest on the same day ,he lent it to rakesh at the same rate but compounded annually and paid the amount to shishir after tow years .what does he gain in the transaction?

Answer 1

Ravi  

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