Question

The difference between simple interest and compound interest for a certain sum of money at 8% per annum for 1 and 1/2 years, when the interest is compounded half yearly is 228. find the sum​

Answer 1

Let the Sum = P

Given Rate of interet = R = 8% p.a, Time = T = one and half year = 3 /2 years

SI= PRT/100 =( P x 8 x 3/2)/100 = 12P/100

CI = P{(1+R/200)2T-1}= P{(1+8/200)^3-1} = P{(26/25)^3-1}  

= P* (26^3 -25^^3)/253 = 1951P/15625

Given CI-SI= 228

or 1951P/15625 - 12P/100 = 228

or P= 46875 (Answer)