Question

Hari borrowed $Rs.28,000$ from her friend at $12\%$ per annum simple interest. She lent it to Ali at the same rate but compounded annually, find her gain after $2years.$

Answer 1

Amount given to his Friend at SI after 2 Years,

$A=P(1+rt)=28000(1+\frac{12}{100}\ast 2)=25000(1+\frac{24}{100})=25000\left(1.24\right)=31000$

Amount he will get after 2 Years at CI,

$A=P(1+r{)}^n=28000(1+\frac{12}{100}{)}^2=25000\ast (1.12{)}^2=35123.2$

His Gain = $35123.2-31000=4123.2$