Question

ruchi borrowed rs 18000 from her friend at the rate of 12% per annum at simple interest. she lent it further to another friend Aarti at the same rate but compounded annually. find the profit that ruchi earns after 2 years .step by step

Answer 1

SI for Ruchi = A×R×T/100
= 18000×12×2/100
= 4320
Amount for Aarti = 18000×(1+12/100)2
=18000×112/100×112/100
=22579.2
CI for Aarti = 22579.2-18000
=4579.2
Ruchi's profit = 4579.2-4320
= 259.2

Answer 2

Solution:

P = 18000

R = 12%

N = 2 year

SI = PRN/100

= 18000×12×2/100

= 180×24

= 4320

Amount = P(1+R/100)n

= 18000(1+12/100)2

= 18000(112/100)2

= 18000×112/100×112/100

= 18×112×112/10

= 22579.2

I = A-P

= 22579.2-18000

= 4579.2

Therefore Ruchi got = 4579.2-4320

= 259.2 answer hope it helps you....