A man borrowed Rs. $8000$ at $10 %$ per annum simple interest and immediately lent the whole sum at $10 %$ per annum compound interest. What does he gain at the end of $2$ years?

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Solution

C.I $=$ Rs. $8000 \times {(1 + \frac{10}{100})}^{2} - 8000$
$=$ Rs $8000 \times {1.01}^{2} - 8000 =$ Rs. $1680$
S.I $=$ Rs. $\frac{8000 \times 10 \times 2}{100} = 80 \times 10 \times 2$ Rs. $1600$
Gain $= C . I - S . I$
$= 1680 - 1600 =$ Rs. $80$

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A man borrowed Rs.8000 at 10% per annum simple interest and immediately lent the whole sum at 10% per annum compound interest. What does he gain at the end of 2 years?

C.I=Rs.8000×(1+10100)2−8000=Rs8000×1.012−8000=Rs.1680S.I=Rs.8000×10×2100=80×10×2Rs.1600Gain=C.I−S.I=1680−1600=Rs.80

A man borrowed Rs. $8000$ at $10 %$ per annum simple interest and immediately lent the whole sum at $10 %$ per annum compound interest. What does he gain at the end of $2$ years?

C.I $=$ Rs. $8000 \times {(1 + \frac{10}{100})}^{2} - 8000$
$=$ Rs $8000 \times {1.01}^{2} - 8000 =$ Rs. $1680$
S.I $=$ Rs. $\frac{8000 \times 10 \times 2}{100} = 80 \times 10 \times 2$ Rs. $1600$
Gain $= C . I - S . I$
$= 1680 - 1600 =$ Rs. $80$