Question

34.
For what hypothetical rate of interest is the simple interest after two years equal to the compound interest
compounded half-yearly after a year?
(a) 100
(c) 400
(d) Cannot be determined
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Answer 1

C)
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Hope I helped u

Answer 2

Answer:

option c) 400

Step-by-step explanation:

let the rate of interest be R

time = 2 years

principal = P let

simple interest = PTR/100

= P*2*R/100

= PR/50

for compound interest

R = R/2

n= 2

CI = P(1+R/200)^2 - P

according to question

CI = SI

P(1+R/200)^2 - P = PR/50

(1+R/200)^2 - 1 = R/50

(1+R/200)^2 = 1 + R/50

1+R^2/40000 + R/100 = 1+R/50

R^2/40000 = R/50 - R/100

R^2/40000 = R/100

R^2 - 400R = 0

R(R - 400) = 0

this means either R= 0 or R = 400.

so option c