Question

on a certain sum of money the difference between ci for a year payable half yearly and the si for a year is 120 rupees .find the sum lent out if the rate of interest in both cases is 10 percent pa

Answer 1

Step-by-step explanation:

Let P be the sum of money invested.

The difference between the CI for a year ,payable half-yearly and the SI

for a year is Rs. 120.

Compound interest when compounded half-yearly is at 10% p.a. is 10/2 = 5% half yearly

CI = P(1 + 5/100)2 - P

P(1.05)2 - P - P × 10/100 = 120

P(1.1025 - 1 - 0.1) = 120

Solving this we get P = Rs. 48,000