Question

Raju lent rupess 2000 at compound interest at 10 percent payable half yearly.Find the difference in the interest received by raju and prasant at end of 1 year

Answer 1

Raju's Case

Principal = 2000
Rate = 10% p.a.
A = P ( 1 + r)n
                 100
A=  2000[ 1 + 10/100]1   =  2000 * 110/100
   =  2200
 
Prashant's Case
Principal = 2000
Rate = 10% p.a.  or  5% half - yearly
A = 2000 (1 + 5/100)2-no. of half years
   = 2000 * 105/100 * 105//100
   =2205
The Difference
2205 - 2200 = 5 rupees .
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