Govind borrow ₹18000 at 10% simple interest he immediately invests the money borrowed at 10% compound interest compounded half yearly how much money does govind gain in one year?
P = 18000 , R = 10%
SI after one year = 18000*10/100 = Rs. 1800
Amount = 19800
When it's invested on CI, Rate for 6 months = 10/2 = 5%
CI for first 6 months = 18000 * 5/100 = Rs. 900
Amount for 6 months = 18900
CI for next 6 months = 18900 * 5/100 = Rs. 945
Total amount = 19845
His gain = 19845-19800
= Rs. 45