Ahmed could have gained 61 rupees more, if had given had given in compound interest.
<em><u>Solution:</u></em>
Given that Ahmed lent amir Rs8000 at simple interest for 3 years at the rate of 5% per annum
<em><u>Simple Interest calculation:</u></em>
Principal = 8000
Rate of interest = 5%
Time = 3
Formula:
Where , "p" is the principal and "n" is the number of years and "r" is the rate of interest
Substituting the values in formula,
<em><u>Compound Interest calculation:</u></em>
Principal = 8000
Rate of interest = 5% compounded annually
Time = 3
Formula:
Substituting the values in formula,
Therefore, the difference between the interests:
1261 - 1200 = 61
Thus he could have gained 61 rupees more, if had given had given in compound interest.