Question

If rs 12000 is lent at 10% pa compound interest compounded half yearly for one year.What is the equivalent simple rate of interest fpr year for same interest

Answer 1

it's nice question......

Answer 2

On calculating the compound interest through the given principle and the rate of interest using the formula CI= (P+ R/100)n,

The value comes approximately to Rs 680.

Therefore, assuming the rate to be 10% as per the value is given in the question, the calculation is done half yearly which comes to 5%.