Question

Vikram borrowed 20000 from a bank at 10% per annum simple interest. he lent it to his friend Venkat @ same rate but compared annually. Find his gain after two and a half years

Answer 1

Vikram's simple interest for 2 nd 1/2 years
= PRT/100
=₹ 400
Vikram's interest from Venkat
= P(1+r/100)² - P
= ₹ 420
His profit
=₹420-400
= ₹ 20