Question

a person borrowed some amount from bank at rate of 4% per annum compounding yearly he lent the whole amount to shopkeeper at 6% per annum compound intreat compounded half yearly if at the end of year he gained rs 104.50 find the amount he borowwed from bank

Answer 1

5000 Rs

if borrowed is 100 compound interst is 104

therefore, interest to be paid is 4

if the shopkeeper got rs 100 then 6 months interest is 3 and next 3 months interest is 3.09 so interest to be paid is = 6.09

difference 6.09-4=2.09

if 2.09 is the difference principle is 100

if 104.50 is the difference the principle = (100x104.50)/2.09 =5000