A sum of money invested at a half yearly compound interest rate of 5%. If the difference between principal's after 6 month and 12 month is 126 then what is the principal.
Answers
Step-by-step explanation:
(i) The sum of money invested = RS 4032.
(ii) The amount at the end of first year = RS 4326.12.
To find:
(i) The sum of money invested ?
(ii) The amount at the end of first year ?
Given data:
Rate of interest = 5%
Difference between the principle at the end of 6 months and 12 months = RS.126
Formula:
CI =
Solution:
Rate of interest = 5%
Since calculated half-yearly, rate of interest for 6 months = 2.5%
Difference between the principle at the end of 6 months and 12 months = RS 126
Difference between the rate of interest at the end of 6 months and 12 months is calculated as,
=
= 5.625 - 2.5
= 3.125
Thus 3.125 = 126
Then 100 = ?
=
= 4032.
Therefore,
(i) The sum of money invested = RS 4032
(ii) The amount at the end of first year,
CI =
=
=
= 4032 × 1.050625
CI = 4326.12