Question

A business man invests same amount of sum in two projects With the same rate or interest 12% p.a. for 1.5 years, whereas the project 1 is based on the simple interest and project 2 is based on the compound interest compounded half yearly. If he earns an excess interest of 1377 in the project 2, find the sum invested.​

Answer 1

Step-by-step explanation:

To find compound interest when interest is compounded half-yearly we use formula

A=P(1+

2

r

)

2n

Here, P=Rs.12000,r=10% and n=1.5 years

Hence,A=12000(1+0.05)

3

A=12000×1.157625

A=Rs.13891.5