Question

Mahesh borrowed rupees 16000 at 7 1/2% per annum simple interest ,on the same day he lent it to Gagan at the same rate but compounded annually what does he gain at the end of 2 years??
Here I have a doubt in the answer itself:
Given that Mahesh borrowed 16000 rupees at 7 1/2% per annum Simple interest.
P = 16000
R = 7 1/2
= 15/2%.
T = 2
We know that SI = PRT/100
= 16000 * 15 * 2/2 * 100
= 16000 * 15/100
= 2400.
Here when we are calculating SI (Simple Interest) why is time given as 2/2 years not 2 years?

Answer 1

Answer:

15/2%. = 2400. = 18400. Given that he lent it to Gagan at the same rate.