Question

two persons A and B borrow equal sums of money from a lender. A borrows at the rate of 12% for 1.5 years inyerest being compounded yearly. B borrows at 10% for the same period interest being compounded half yearly. if A has to pay Rs. 295.75 more as interest then find the sum of money each borrowed

Answer 1

So let's assume the sum is 100.

As per the first case,
the compound Interrest on 100 after one and half years at the rate of 12 % will be = 12% of 100 in the first year and 6 % of 100 in the second year and then 6 % of the Interest that occurred in the first year.

= 12 + 6 + .72 = 18.72 %


as per the second case,

at 10 % rate for the same time but compounded half early. So the rate will become half.

the Interst will be = (100×105×105×105)/1000000 = 115.7625

it means the Interst was = 15.7625 %

as per the question, the difference between A and B is 295.75.

So let's subtract both interest ..

18.72 % - 15.7625 % =
295.75

2.9575 % = 295.75

1 % = 100

So 100 % = 100×100 = 10000

So the Sum is 10000. answer..