Question

Sudhir lent 2,000 at compound interest at 10% payable yearly, while Prashant lent,2,000 at compound interest at 10% payable half-yearly. Find the difference in the interest received by Sudhir and Prashant at the end of one year. ​

Answer 1

Answer:

Answer is attached here.

Answer 2

Sudhir's Case

Principal = 2000

Rate = 10% p.a.

A = P ( 1 + r)n

                 100

A=  2000[ 1 + 10/100]1   =  2000 * 110/100

   =  2200

 

Prashant's Case

Principal = 2000

Rate = 10% p.a.  or  5% half - yearly

A = 2000 (1 + 5/100)2-no. of half years

   = 2000 * 105/100 * 105//100

   =2205

The Difference

2205 - 2200 = 5 rupees .