Question

Ravi borrowed Rs.25000 from shishir at 15%p.a. 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 2 years . what does he gain in this transaction?
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Answer 1

Answer:

he got a profit of 1562. 5 rupees

Step-by-step explanation:

as- let's find the the interest on rupees 25000 that was Lant by shishir to Ravi-

• SI= p *r *t/ 100

p=25000

r=15%

t=2 years

SI= (25000*15*2)/100

SI= 7500

now find the interest on 25000 rupees that were lent bye Ravi tu Rakesh on compound interest-

• CI=P[(1+ R/100)^n-1]

P=25000

R=15%

T=2 years

CI= 25000[(1+ 15/100)^2-1]

CI=8062.5

now find the difference between the both amounts

25000+7500=32500

25000+8062.5=33062.5

33062.5-32500=1562.5