Irish borrowed a sum of Rs 163840at 12.5% per annum compounded annually.on the same day , he lent out the same amount to sahej at the same rate of interest but compounded half yearly. find his gain after two years.
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for IRISH the amount he need to pay back in 2 years an amount of
A = P(1 + r/n)nt
P = 163840
r= 12.5%
n=1
A= 163840 ( 1+ 12.5 X1) /100 ) 1X2 = 207,360.00
Sahej need to pay back to Irish after 2 years
A= 163840 ( 1+ 12.5 X2) /100 ) 2X2 = 208,802.50
after 2 years after repaying his dues Irirsh is gainer by = money he gets from Sahej - money he pays back
= 208,802.50- 207,360.00= Rs 1,442.50
A = P(1 + r/n)nt
P = 163840
r= 12.5%
n=1
A= 163840 ( 1+ 12.5 X1) /100 ) 1X2 = 207,360.00
Sahej need to pay back to Irish after 2 years
A= 163840 ( 1+ 12.5 X2) /100 ) 2X2 = 208,802.50
after 2 years after repaying his dues Irirsh is gainer by = money he gets from Sahej - money he pays back
= 208,802.50- 207,360.00= Rs 1,442.50
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