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When the rate of interest is compounded eight months of Dipak = (15 × 8/12) %=10% Time for Dipak = (2 × 12/8) = 3 years Now, CI for Rama is. A = P (1 + r/100) t =8000(1+15/100)2 (8000 × 23/20 × 23/20) = (8000 × 529/400) =20×529 = 10580 Interest = A – P = (10580– 8000) Rs. = 2580 Rs. Now, CI for Dipak is. A = P (1 + r/100) t A = 8000(1 + 10/100)3 = 8000(1 + 1/10)3 = 8000(11/10)3 = 8×1331=10648 Interest = A – P = (10648– 8000) =2648Rs. Now, Dipak receives as much interest as compared to Rama at the end of the two-year period = Rs. (2648 – 2580) = 68 Rs.
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