Question

A person lent out some money for 1 year at 6% pa si and after 18 months he again lent out the same money at si of 24%pa. In both cases he got 4704 then the amount he lent out in each case if the interest is paid half yearly?

Answer 1

Answer:

Step-by-step explanation:

In the first case, the rate of interest is 3% per half-year. The money will become

1.03x after 6 months from t = 0

1.06x after 12 months from t = 0

1.09x after 18 months from t = 0

1.12x after 24 months from t = 0 and so on ….

 

In the second case, the rate of interest is 12% per half-year. The money is given out at t = 18.

The money will become:

1.12x after 6 months from t = 18, which is 24 months from t = 0.

 

So after 2 years the returns from both the investments will be same. They will be 1.12x

This was the point at which he gets back 4704 Rs.

=> 1.12x = 4704

=> x = 4200 Rs.