Question

Sudhir lent 2000 Rupees at compound interest at 10.percent payable yearly, while Prashant lent 2000 Rupees at compound interest at 10 percent payable half yearly. Find the difference in the interest received by Sudhir and Prashant at the end of one year.

Answer 1

Given:

(i) Sudhir lent 2000 Rupees at compound interest at 10% payable yearly.

(ii) Prashant lent 2000 Rupees at compound interest at 10 percent payable half yearly.

To find:

(i) The difference in the interest received by Sudhir and Prashant at the end of one year.

Solution:

We know,

Amount (A) in CI is given as:

A = P(1 + r/n)^(nt)

P is the Principal money

R is the rate percentage

t is time period

n is number of times interest is compounded per unit t

For Sudhir,

A = 2000(1 + 0.10)^1

= 2000(1.1)

= Rs 2200

CI = A-P

= Rs (2200-2000)

= Rs 200

For Prashant,

A = 2000(1 + 0.10/2)^(1*2)

= 2000(1.05)^2

= Rs 2205

CI = A-P

= Rs (2205-2000)

= Rs 205

Difference in interests = Rs 205- Rs 200

= Rs 5

Rs 5 is the answer.

Answer 2

Step-by-step explanation:

hope it would be helpful