Question

Rohan Borrows 40000 at 10% per annum simple interest immediately invested is money at 10% per annum compounded half yearly calculate Rohan's gain in 18 months

Answer 1

Answer:

350

EXPLANATION step-by-step

Principal = 40000

Principal = 40000Rate = 10% per annum at Simple interest

Principal = 40000Rate = 10% per annum at Simple interestTime = 18 months = 3/2 years

$simple\:interest= \frac{principal\times\:rate\times \: time}{100}$

simple interest = (40000 × 10 ×3/2) ×1/100

= (20000 × 10 ×3) ×1/100

= 600000 ×1/100

= 6000

Now ,

since rate compounded half yearly

Principal = 40000

Rate = 5% half yearly

Time = 18 months = 3/2 year

n = 3

compound interest = amount - principal

AMOUNT = PRINCIPAL ×{1+ R/100}'

=40000 ×{1+ 5/100}³

= 40000 × {1+ 1/20}³

= 40000 × {21/20}³

= 40000 × 9261/8000

= 40 × 9261/8

= 5 × 9261

= 46305

Compound interest = 46350 - 40000

= 6350

Gain = 6350 - 6000 = 350

Answer 2

ANSWER

350

Step-by-step explanation:

principle=40000

rate=10%p.a.

time = 18 months

=3/2 year

simple interest =p×r×t/100

= 40000×10×3/2/100

=20000×10×3/100

=60000/100

= 6000

Now,

since rate compounded half yearly

principle=40000

rate=5%half yearly

time=18months

=3/2

n=3

compound interest=amount-principle

amount=p(1×5/100)

=40000×(1×5/100)³

=40000×(1×1/100)³

=40000(21/20)³

=40000×9261/8000

=40×9261/8

=5×9261

=46350

compound interest=46350-40000

=6350

Gain=6350-6000

=350