Question

simple interest on a sum of money for 2 years at 4% is rupees 450 find compound interest on the same sum at the same rate of for the for 1 year if the interest is compounded half yearly​

Answer 1

Simple interest for 1 year = 450/2 =225

let x be the principal

9x/100=225

x=2500

2500*(9/100)= 225

capital for the second half year =2725

2725*(9/100)= 245.25

so compounded interest for 1 year = 225 + 245.25 = 470.25 ( only when the interest is not per annum