Question

p borrowed Rs. 16000 from a person at 12 % per Annum simple interest and lent the whole amount to Q at the same rate of annually compound interest, how much did he gain after 3 years ? Find it.​

Answer 1

Answer:

P earned $ 718.85.

Step-by-step explanation:

Given that P borrowed $ 16000 from a person at 12% per annum simple interest and lent the whole amount to Q at the same rate of annually compound interest, to determine how much did he gain after 3 years the following calculation must be performed:

16,000 x 0.12 x 3 = X

1,920 x 3 = X

5,760 = X

16,000 x (1 + 0.12 / 1) ^ 3 = X

16,000 x 1.12 ^ 3 = X

16,000 x 1.404928 = X

22,478.85 = X

22,478.85 - 16,000 = 6,478.85

6,478.85 - 5,760 = X

718.85 = X

Therefore, P earned $ 718.85.