Raja borrowed ₹15,000 on simple interest at the rate of 13% per annum and lent it on compound interest at the rate of 15% per annum, compounded annually. What is Raja's gain in two years?

₹937.50

First case,

Simple interest = \(\frac{P × R × T}{100}\)

= \(\frac{15000 × 13 × 2}{100}\)

= 3900

2nd case,

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

= 15000 [ 1 + \(\frac{15}{100}\) ]² - 15000

= 15000 × \(\frac{23}{20}\) × \(\frac{23}{20}\) - 15000

= 19837.5 - 15000

= 4837.5

Gain of Raju in 2 years = 4837.5 - 3900

= 937.50