Question

Sudhir lent 2000 at compound interest at 10% payable yearly , while prashant lent 2000 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

[tex]Sum\ after\ 1\ year\ for\ sudhir = Rs\ 2, 000\ (1 +10/100)^1=Rs\ 2,200.\\\\Sum\ after\ 1\ year\ for Prashant\\\\=Rs 2, 000(1+10/100)^2=Rs\ 2, 000 * 1.21= Rs 2, 420\\ \\Difference=Rs\ 220\\ [/tex]

Difference in interests is also same and is Rs 220.