Question

The simple interest on a sum of money for $2$ years at $4\%$ per annum is $Rs340$. Find
(i) the sum of money
(ii) the compound interest on this sum for one year payable half yearly at the same rate.

Answer 1

$T=2years,R=4\%,S.I.=340$

$S.I.=\frac{P\times R\times T}{100}$

$340=\frac{P\times 2\times 4}{100}$

$34000=8P\Rightarrow 4250=P$

$A=P{\left(1+\frac{R}{100}\right)}^2$

$A=4250{\left(1+\frac{4}{100}\right)}^2$

$A=4250\times \frac{104}{100}\times \frac{104}{100}$

$A=4596.8$