Question

Harpreet borrowed $Rs.20000$ from her friend at $12\%$ per annum simple interest. She lent it to Alam at the same rate but compounded annually. Find her gain after $2$ years.

Answer 1

In case of Harpreet :

Amount borrowed by Harpreet $\left(P\right)=Rs.20000$

Rate $\left(R\right)=12\%$

Period $\left(T\right)=2$ Years

$\Rightarrow S.I.=\frac{P\times R\times T}{100}$

$=\frac{20000\times 12\times 2}{100}$

$=Rs.4800$

In case of Alam

Interest for the $1$ st year $=\frac{20000\times 12\times 1}{100}$

$=Rs.2400$

Amount at the end of first year $=Rs.20000+Rs.2400=Rs.22400$

Interest for the second year $=Rs.\frac{22400\times 12\times 1}{100}$

$=Rs.2688$

$C.I$ for $2$ years $=Rs.2400+2688=Rs.5088$

Gain $=Rs.5088-Rs4800$

$=Rs.288$