A Sum of money waslent for 2 years @20% pa compounded annually. if the intrest is payable half yearly insted of yearly then the intrest is rs-482 more . Find the sum?
Answers
Answered by
1
Let the sum be P.
Accumulated total = S1 = P (1 + 20/100)² = P 1.2² = 1.44 P
Interest I1 = S1 - P = 0.44P
If the interest is compounded half-yearly, then:
interest for 6 months = 20% * 6/12 = 10%
number of times it is compounded is 4.
S2 = P ( 1 + 10/100)⁴ = P 1,1⁴ = 1.4641 P
Interest I2 = S2 - P = 0.4641 P
Difference in the interest = S2 - S1 = I2 - I1 = 0.4641 P - 0.44 P
0.0241 P = Rs 482
P = Sum lent = Rs 20,000.
Accumulated total = S1 = P (1 + 20/100)² = P 1.2² = 1.44 P
Interest I1 = S1 - P = 0.44P
If the interest is compounded half-yearly, then:
interest for 6 months = 20% * 6/12 = 10%
number of times it is compounded is 4.
S2 = P ( 1 + 10/100)⁴ = P 1,1⁴ = 1.4641 P
Interest I2 = S2 - P = 0.4641 P
Difference in the interest = S2 - S1 = I2 - I1 = 0.4641 P - 0.44 P
0.0241 P = Rs 482
P = Sum lent = Rs 20,000.
Similar questions