Question

Series borrowed a sum of 163840 at 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 2 years

Answer 1

Answer:

1442.5.

Step-by-sTEP;

1PART

We know that  A = P(1+r/100)^n

                           = 163840(1+12.5/100)^2

                           = 163840(112.5/100)^2

                           = 2048 * 22.5 * 4.5

                           = 207360.

2 PART

A = P(1+r/100)^n

  = 163840(1+6.25/100)^4

  = 163840(106.25/100)^4

  = 208802.5

Gain after 2 years = (44962.5 - 43520)

                              = 1442.5.