Vikram borrowed ₹ 20000 from a bank at 10% per annum simple interest. He lent it to his friend Venkat at the same rate but compounded annually. Find his gain after 2 years .
Answers
Answer:
200
Step-by-step explanation:
SI=P*R*T/100
SI=20000*10*2/100=4000
AMOUNT GIVEN TO BANK=20000+4000=24000
AMOUNT TO BE RETURNED BY VENKAT TO VIKRAM:
AMT=P(1+R/100)^N
=20000(1+10/100)^2
=24200
PROFIT MADE BY VIKRAM
=24200-24000
=200
hope it helps
Step-by-step explanation:
In first case,
Principal (p) = Rs. 20000
Rate (r) = Rs. 10% p. a
Time (n) = 2 years
Therefore, simple interest => prt/100 => 20000×10×2 = Rs. 4000
100
In second case, Principal (p) = 20000
Rate = Rs. 10% p.a. and time = 2 years at compound interest (CI) => A = P (1+r/100)^2 => 20000(100+10/100)^2 ×(100+100/100)
=20000×110/100×110/100×105/100
=2×11×11×105
A= Rs. 25,410
Therefore, Vekant has to pay to Vikram Rs. 21,410
Thus, Gain of Vikram afer 2 years Rs. =>(25410-25000) = Rs. 410