Question

Rohit borrows Rs 86, 000 from Arun for two years at 5% per annum simple interest. He immediately lends out this money to Akshay at 5% compound interest compounded annually for the same period. Calculate Rohit’s profit in the transaction at the end of two years.

Answer 1

★ Given :

Rohit borrows ₹86,000 from Arun for two years at 5% per annum ..

Case 1: (SI)

P = 86,000

T = 2 years

R = 5%

He lends immediately. to Akshay at 5% compounded annually for same period..

Case 2: (CI)

P = ₹86,000

R = 5%

T = 2 years

★ To calculate :

Rohit's profit in the transaction after end of two years.

★ Solution :

Case 1: (SI)

We know that,

$\leadsto SI = \dfrac{P \times R \times T}{100}$

by putting the values..

$\implies \frac{\cancel{86000} \times 5 \times 2}{\cancel{100}}$

$\implies 860 \times 5 \times 2$

$\implies 860 \times 10$

$\purple{\leadsto SI = 8,600}$

→ SI to be paid by Rohit to Arun = ₹8600..

Case 2: (CI)

We know that,

$\leadsto CI = P\left(1 + \frac{R}{100}\right)^{T} - P$

by putting the values..

$\implies 86000 \left(1 + \frac{5}{100}\right)^{2} - 86000$

$\implies 86000 \left(1 + \frac{1}{20}\right)^{2} - 86000$

$\implies 86000 \left(\frac{21}{20}\right)^{2} - 86000$

$\implies \cancel{86000} \times \frac{441}{\cancel{400}} - 86000$

$\implies (215 \times 441) - 86000$

$\implies 94815 - 86000$

$\purple{\leadsto CI = 8815}$

→ CI to be payed by Akshat to Rohit = ₹8815..

Therefore, Rohit's profit =

8815 - 8600 = 215

★ Rohit's profit after two years = ₹ 215.

Answer 2

Answer:

u answer is ₹215 , hope it will help