Advertisements
Advertisements
Question
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.
Advertisements
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
RELATED QUESTIONS
The simple interest and the compound interest on a certain sum of money for 2 years at the same rate of interest are Rs 8,000 and Rs 8,640 respectively. Calculate the rate of interest and the sum.
Find the difference between the compound interest and the simple interest in 3 years on Rs 15,000 at 8% p.a. compounded yearly.
Meera borrowed Rs 35,000 at 12.5% p.a. simple interest for 3 years. She immediately gave it to Archana at 12 % p.a. compound interest compounded annually. Find Meera's loss or gain at the end of 3 years.
On what sum will the difference between compound interest and the simple interest for 2 years at `7 1/2` % be Rs 22.50 ?
The population of a city is 1, 25,000. If the annual birth rate and death rate are 5.5% and 3.5% respectively, calculate the population of the city after 3 years.
In a factory the production of scooters rose to 46,305 from 40,000 in 3 years. Find the annual rate of growth of the production of scooters.
The population of a city is 24,000. In the next 3 years it will be 27,783. Find the rate of growth of the population.
The value of a property decreases every year at the rate of 5%. If its value at the end of 3 years be Rs 44,540, what was the original value at the beginning of these 3 years?
A mango tree was planted 3 years ago. The rate of growth is 20% per annum. If at present, the height of the tree is 1 m 8 cm, how high was it when planted?
A sum of money is lent out at compound interest for two years at 20% p.a., being reckoned yearly. If the same sum of the money was lent Gut at compound interest of the same rate of percent per annum C.I., being reckoned half yearly would have fetched Rs. 482 more by way of interest. Calculate the sum of money lent out.
