Respuesta :
Ahmed could have gained 61 rupees more, if had given had given in compound interest.
Solution:
Given that Ahmed lent amir Rs8000 at simple interest for 3 years at the rate of 5% per annum
Simple Interest calculation:
Principal = 8000
Rate of interest = 5%
Time = 3
Formula:
[tex]S.I=\frac{p\times n\times r}{100}[/tex]
Where , "p" is the principal and "n" is the number of years and "r" is the rate of interest
Substituting the values in formula,
[tex]S.I = \frac{8000 \times 3 \times 5}{100}\\\\S.I = 80 \times 3 \times 5 = 240 \times 5\\\\S.I = 1200[/tex]
Compound Interest calculation:
Principal = 8000
Rate of interest = 5% compounded annually
Time = 3
Formula:
[tex]C.I=P(1+\frac{R}{100})^n-P[/tex]
Substituting the values in formula,
[tex]\Rightarrow C.I=8000(1+\frac{5}{100})^3-8000\\\\\Rightarrow C.I=9261-8000\\\\\Rightarrow C.I=1261[/tex]
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.
