Question

vikram borrowed rs 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 2½years ​

Answer 1

Answer:

Step-by-step explanation:

Principle amount(P) = 20000;

Rate of interest(R) = 10%;

Time(T) = 2.5 Years

Simple interest = PRT/100;

= 20000*10*2.5/100 = 5000;

Compound Interest = P{1 + R/100}^T;

Here rate of interest count as half yearly;

So R = R/2 and T = 5;

= 20000[1 + 10/2*100]^5;

= 20000[1.05]^5;

= 20000*1.27 = 25525.6

Gain =  Compound Interest - Simple Interest;

Gain = 25525.6-5000 = 20525.6

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Step-by-step explanation: