Question

10000 was lent for one year at 10% per annum. By how much more will the intere
be, if the sum was lent at 10% per annum, interest being compounded half-yearly?​

Answer 1

Answer:

is given that

Principal= 10000

Rate of interest (r) = 10% p.a.

Period = 1 year

We know that

A = P(1+r/100)

n

Substituting the values

=10000(1+10/100)

1

by further calculation

=10000×11/10

= 11000

Here

Interest = A - P

Substituting the values

=11000−10000

1000

In case 2,

Rate (r) = 10%p.a. or 5% half-yearly

Period (n) = 1 year or 2 half-years

We know that

A = P(1+r/100)

n

Substituting the values

=10000(1+5/100)

2

By further calculation

=10000×21/20×21/20

= 11025

Here

Interest = A - P

Substituting the values

=11025−10000

= 1025

So the difference between the two interests = 1025 - 1000 = 25