Question

the difference between simple interest and compound interest for a certain amount of money at 8% per annum for 1.5 years when the interest is compounded half yearly is rs.228. find the sum

Answer 1

halfyearly
r=8%/2=4%half yearly
t=1.5 year=18months/6=3time
a=p(1+r/100)^t
a=p(1+4/100)^3
a=p(104/100)^3
a=p(26/25)^3
a=p(17576/15625)
ci=a-p
228=[p(17576/15625)]-p
228=p(17576/15625-1)
228=p[(17576-15626)/15625]
(228×15625)/1951=p
1825.98=p
si=(p×r×t)/100
si=(1825.98×4×3)/100
si=219.12
difference = ci>si
=225.00-219.12
=5.88