Question

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 .

Answer 1

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

Answer 2

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