Question

Sirish borrowed a sum of 1,63,840 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 two years.​

Answer 1

ANSWERS:

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.

Compound Interest per annum = (207360 - 163840) = 43520.

Now we have to calculate compound interest half yearly r=12.5/2= 6.25

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

   = 163840(1+6.25/100)^4

   = 163840(106.25/100)^4

   = 208802.5

Compound Interest half yearly = (208802.5 - 163840) = 44962.5

Gain after 2 years = (44962.5 - 43520)

                               = 1442.5.

HOPE THIS WILL HELP YOU....

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