Question

The simple interest on a sum of money at 12% per annum for 1 year is rs 900. Find
1. The sum of money
2. The compound interest on this sum for 1 year, payable half yearly at the same rate.

Answer 1

sum of money is 7500/- and compound interest is 927/-

Answer 2

The sum is Rs.7500

The compound interest on this sum for 1 year, payable half yearly at the same rate is Rs.927

Step-by-step explanation:

1)Simple interest = Rs.900

Time = 1 year

Rate of interest = 12%

$SI = \frac{P \times T \times R}{100}\\900 = \frac{P \times 1 \times 12}{100}\\\frac{90000}{12}=P$

7500=P

Hence The sum is Rs.7500

2) Sum = 7500

Rate of interest = 12% = 0.12

Time = 1 year

No. of compounds per year = n = 2

$Amount = P(1+\frac{r}{n})^{nt}\\Amount = 7500(1+\frac{0.12}{2})^{2 \times 1}$

Amount =8427

Compound interest = Amount - Principal = 8427 - 7500=927

Hence The compound interest on this sum for 1 year, payable half yearly at the same rate is Rs.927

#Learn more:

Find the compound interest on 10500 at 8% per annum for 2 years

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