Question

Sirish borrowed a sum of ₹163840 at 12.5% per annum compounded annually. On the same day he lent out same amt to Sahej at the same rate of interest but compounded half yearly. Find his gain after 2 years ​

Answer 1

Answer:

163840 compounded annually for 2 years at 12.5% is 163840*1.125^2=207360.

163840 compound semiannually for 2 years at 6.25% (half-year rate) is 163840*1.0625^4=208802.50.

Therefore the gain after 2 years is 208802.50-207360=1442.50.

(This can also be calculated thus: 163840(1.0625^4-1.125^2)=163840*0.0088804.)

Answer 2

Step-by-step explanation:

amount of money after two years= 163840( 1+12.5/100)^2

163740 *1.125^2

=207360

2nd part. so it is compound half yearly/Siminally. so in two year it is compounded 4 times

amount after two year = 207360(1+12.5/100)^4

=207360 * 1.125^4

=332150.625

therefore his gain =332150.625-207360

=rs. 124790.625