Yatin borrowed 1,20,000 from a bank at the rate of
12% per annum for 4 years at simple interest. He lent
this money to his friend at the same rate at compounded annually. Find his gain in this
transaction.
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Yatin borrowed 1,20,000 from a bank at the rate of
12% per annum for 4 years at simple interest. He lent
this money to his friend at the same rate at compounded annually. Find his gain in this
transaction.
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Answer:
borrowed from bank
s.i. = 120000×12×4/100
s.i. = 57600
total amount = 177600
borrowed from friend
c.i. = 120000(1+12/100)^4 - 120000
= 120000(112/100)^4 -120000
= 12×112×112×112×112/100×100 - 120000
= 188822.3232 - 120000
= 68822.3232
total amount = 188822.3232
gain in this transaction = 188822.3232-177600
= 11222.3232 rupees ans.
Answer:
11222.3 232 rupees
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