Bisal! I agree with your your own answer. It's not worth it for two friends to fight for $153 (1153-1000).

But Harry should pay Ram for the interest accumulated each month on that amount.

From this incident we should realize that both lender and borrower should agree upon not only the following formula...

A=P(1+r/n)^(nt)

Where,

• P = principal amount (initial investment)
• r = annual interest rate (as a decimal)
• n = number of times the interest is compounded per year
• t = number of years
• A = amount after time t

..but also the pay back currency if lending is across international borders.