Question

24. The simple interest on a sum of money for 2 years at 4% p.a. is Rs 450. Find the compound interest
on this sum of money at the same rate for 1 year if the interest is reckoned half yearly. ​

Answer 1

Answer:

Or P = 450*100/(2*4) = 5625. A = P(1+r/100)^n. Here, P = 5625, r = 4/2 = 2% and n = 2, since there are two half-yearly compounding of the amounts. Therefore, the compound interest is A - P = 5852.25-5625 = 227.25.

Answer 2

Answer:

let the principal amount is Rs x

then simple interest =x.2.4/100

so,

x.2.4/100=450

x=450×100/4×2=5625

so principal amount is Rs 5625

next compound interest for 1/2 years

Rs 5625×4/2×100

= Rs112.50

after half years amount

Rs (5625+112.50)

=Rs 5737.50

now again compound interest for 1/2 years

Rs 5737.50×4/2×100

Rs 11475/100

=Rs 114.75

total compound interest

=Rs (112.50+114.75)

=Rs 227.25