A merchant borrows G 4,800 @ 6% simple interest and invests at 7.50% compound interest. If the transaction is closed at the

Question

A merchant borrows G 4,800 @ 6% simple

interest and invests at 7.50%
compound

interest. If the transaction is closed at the

end of three years, what is his gain

in progress 0
Arianna 3 weeks 2021-11-07T10:34:47+00:00 1 Answer 0 views 0

Answers ( )

    0
    2021-11-07T10:36:37+00:00

    Answer:

    299.03

    Step-by-step explanation:

    First we will calculate how much he has to return back for the amount borrowed

    Principal P=4800, R=6%, T=3

    SI=PRT/100=4800×6×3/100

    =864

    Amount payable = P+SI=4800+864=5664

    This amount is invested at 7.50% compound  interest for 3 years

    P=4800, R=7.5%, n=3

    Amount receivable=P(1+R/100)^n

    =4800(1+7.5/100)^3

    =4800(1.075)^3

    =5963.025≈5963.03

    Gain=Amount receivable – Amount payable

    = 5963.03 – 5664

    =  299.03

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