Suprim borrowed some money for 2 years at the rate of compound interest of 10% p.a. and immediately he lent the money at the same rate of half yearly compound interest for the same period of time. In this transaction, if he gained Rs. 2019.24, then find how much he borrowed.

Question

Accepted Answer

Let the borrowed sum . Yearly CI paid (to the lender, , 2 years): . Half yearly CI received (from the borrower, , 2 years i.e. 4 periods at ): . Gain . Setting this equal to : .