Romesh borrowed a sum of Rs. 245760 at 12.5% per annum, compounded annually. On the same day, he lent out his money to Ramu at the same rate of interest, but compounded semi-annually. Find his gain after 2 years.
Given,
For Romesh,
Principal = Rs. 245760
Rate = 12.5% per annum
Time = 2 years
Hence,
Compound interest = 
= 
For Ramu,
Principal = Rs.245760
Rate = 
Time = 2×2 = 4 half years
Compound interest = 
= 245760
Hence,
Gain for Romesh = Rs.(67443.75 – 65280 ) = Rs. 2163.75
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