Question

sirish borrowed a sum of rupees 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

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

rate half 2*time

12.5% = 25/2

12.5% / 2 = 25/4 2*2= 4

A = 163840 ( 1 + 25/4*100 )^4

= 163840 (1+1/8)^4

= 163840 * 9/8 * 9/8 * 9/8 * 9/8

= 40 * 9*9*9*9

= 40 *81*81
= 282440
compound interest = A - P

= 282440 - 163840
=118600