The simple interest on a sum of money to
2 years at 12% per annum is rs. 1380. Find
(1) the sum of money and
(in) the compound interest on this sum for
one year payable half yearly at the same
rate
Answers
Answered by
2
Step-by-step explanation:
Answer
It is given that
Simple Interest (SI) = 1380
Rate of interest (R) = 12% p.a.
Period(T)= 2 years
(i) We know that
Sum(P) = (SI×100)/(R×T)
Substituting the values
=(1380×100)/(12×2)
= 5750
(ii) Here
Principal (P)= 5750
Rate of interest (R)= 12% p.a or 6% half- yearly
Period (n) = 1 year - 2 half years
So we get
Amount (A)= P(1 + R/100)
Substituting the values
=5750(1+6/100)
2
By further calculation
= 5750×(53/50)
2
So we get
=5750×53/50×53/50
= 6460.70
Here
Compound interest = A- P
Substituting the values
= 6460.70−5750
= 710.70
Similar questions