sunayana borrowed a sum of Rs 25000 at 12 %p. a simple interest for 1 years 6 months and lent to bishwant at the same rate of compound interest compounded half-yearly for the same interval of time . How much profit did she make​

Rs 275.40

Step-by-step explanation:

Since Sunayana borrowed a sum of Rs 25000 at 12 %p.a simple interest for 1 years 6 months, the total amount that she's expected to pay will be calculated thus:

First, well calculate the interest. This will be:

= PRT/100

= (25000 × 12 × 1.5 / 100)

= 4500

Total amount to be paid back will be:

= Rs 25000 + Rs 4500

= Rs 29500

Since she lent the money to Bishwant, the total amount that Bishwant will pay will be:

A = P(1 + r)^t

where,

A = Final Amount

P= Principal = 25000

r= Rate of interest =

t= Time = 3 cycles

Since it's compounded half yearly, then 1½ywars will be = 1½ × 2 = 3 cycles

The rate will be = 12%/2 = 6% yearly.

We'll then slot the values into the question and this will be:

A = P(1 + r)^t

A = 25000(1 + 0.06)³

A = 25000(1.06)³

A = 25000 × 1.191016

A = 29775.4

Therefore, Bishwant is expected to pay Rs 29775.4

Then the profit that Sunayana is expected to make will be:

= Rs 29775.4 - Rs 29500

= Rs 275.40

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step-by-step explanation:

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