A borrowed a sum of Rs. 4000 from B at the rate of 10% per annum under simple interest. Immediately A gave this money to C at the same rate under compound interest compounded quarterly. Find the profit of A in doing so after 6 months.

A borrowed a sum of Rs. 4000 from B at the rate of 10% per annum under

1.	A borrowed a sum of Rs. 4000 from B at the rate of 10% per annum under simple interest. Immediately A gave this money to C at the same rate under compound interest compounded quarterly. Find the profit of A in doing so after 6 months.
Answer» Principal, P=Rs. 4000 Rate of Interest, R=10% Time period =6 months `=(1)/(2)` year Amount paid by A after this period is `P[1=(TR)/(100)]=Rs. 4000 [1+(10)/(200)]=Rs. 4000xx(21)/(20)=Rs. 4200` Amount received by A after this period is `P[1+(R )/(100)]^(n)` `R==(10%)/(4)=2.5%` n=2 `(because " months " =2xx3` months) `implies P[1+(R )/(100)]^(n)=Rs. 4000(1+(2.5)/(100))^(2)=Rs. 4000xx((41)/(40))^(2)=Rs. 4202.50` `therefore` Profit of A= Rs. 4202.50-Rs. 4200=Rs. 2.50.

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A borrowed a sum of Rs. 4000 from B at the rate of 10% per annum under simple interest. Immediately A gave this money to C at the same rate under compound interest compounded quarterly. Find the profit of A in doing so after 6 months.

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