Mewa lal borrowed Rs. 20000 from his friend Rooplal at 18% per annum s

1.	Mewa lal borrowed Rs. 20000 from his friend Rooplal at 18% per annum simple interest. He lent it to Rampal at the same rate but compounded annually. Find his gain after 2 years.
Answer» Given details are, Principal (p) = Rs 20000 Rate (r) = 18 % Time = 2 years By using the formula, Interest amount Mewa lal has to pay, By using the formula, Simple interest = P×T×R/100 = (20000×18×2)/100 = 7200 Interest amount Rampal has to pay to Mewa lal, By using the formula, A = P (1 + R/100)ⁿ = 20000 (1 + 18/100)² = 20000 (118/100)² = Rs 27848 – 20000 (principal amount) = Rs 7848 ∴ Mewa lal gain = Rs (7848 – 7200) = Rs 648

Mewa lal borrowed Rs. 20000 from his friend Rooplal at 18% per annum simple interest. He lent it to Rampal at the same rate but compounded annually. Find his gain after 2 years.

Answer»

Given details are,

Principal (p) = Rs 20000

Rate (r) = 18 %

Time = 2 years

By using the formula,

Interest amount Mewa lal has to pay,

By using the formula,

Simple interest = P×T×R/100

= (20000×18×2)/100 = 7200

Interest amount Rampal has to pay to Mewa lal,

By using the formula,

A = P (1 + R/100)ⁿ

= 20000 (1 + 18/100)²

= 20000 (118/100)²

= Rs 27848 – 20000 (principal amount)

= Rs 7848

∴ Mewa lal gain = Rs (7848 – 7200) = Rs 648