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Anand Borrows Rs 20,000at 9°/O P.A. Simple Interest for 3 Years. He Immediately Gave It to Prakash at 8~ 0/O P.A. Compound Interest Compounded Annually. Find Anand'S Loss Or Gain. - Mathematics

Sum

Anand borrows Rs 20,000at 9 % p.a. simple interest for 3 years. He immediately gave it to Prakash at `8 1/2 %` p.a. compound interest compounded annually.
Find Anand's loss or gain. 

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Solution

Here, P=Rs 20,000 ; t=3 years

For simple interest: r = 9 %

S.I. = `("P" xx "r" xx "t")/100`

S.I. = Rs `(20000 xx 9 xx 3)/100` 

S.I. = Rs 5400

For compound interest : r = `8 1/2 %`

`"A" = "P" (1 + "r"/100)^"n"`

A = Rs 20000 `(1 + 17/(2 xx 100))^3`

A = Rs `20000 xx 217/200 xx 217/200 xx 217/200`

A = Rs 25545.70

C.I. = A - P

C.I. = Rs (25,545.70 - 20, 000)

C. I. = Rs 5,545.70 

The difference in the compound interest and the simple interest= Rs (5,545.705 - 400) = Rs 145.70 

Anand gained Rs 145.70 

  Is there an error in this question or solution?
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APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 1 Compound Interest
Exercise 1.4 | Q 9 | Page 13
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