Question

rohit borrows rs. 62500 from arun for 2 years at 10% per annum, simple interest. He immediately lends out this sum to kunal at 10% per annum for the same period, compounded annually. Calculate rohit's profit in the transaction at the end of two years ​

Answer 1

Answer and Step-by-step explanation:

Here, P=62500, N=2 yrs, R=10%

S.I. = PNR/100 = (62500 x 2 x 10)/100 = 12500

Rohit lents out Rs. 62,500, n = 2 yrs, r = 10%

Amount = 62500 ( 1 + 10 / 100 )^2

[ Find LCM (and simplify it) ]

= 62500 ( 11/10) ^2

= 75625

C.I. = 75625 - 62500 = 13125

Profit = 13125 - 12500 = Rs. 625

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