wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Simple interest on a certain sum of mine at 9% is rupees 450 in 2 years. Find the compound interest on the same sum at the same rate for 1 year if the interest is reckoned half-yearly.


Open in App
Solution

Determine the compound interest:

Simple interest for 1 year =4502

=225

Let x be the principal 9x100=225x=2500

Thus, the principal amount (P) is Rs.2500.

Now let's calculate the compound interest for the available values:

Principal, P=Rs2500

Since the interest is compounded half-yearly, there are 2 half years in one year.

Time=1year=2halfyears

Rate=92%halfyearly

The amount is computed as,

A=P1+rate100timeA=2500×1+92002A=2500×209200×209200A=Rs.2730.0625

Since the amount is Rs2730.0625 and the principal is Rs2500, therefore, compound interest is calculated as:

Compound Interest = Amount - Principal

C.I.=2730.0625-2500=Rs230.0625

Therefore, the compound interest is Rs230.0625.


flag
Suggest Corrections
thumbs-up
4
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Simple and Compound Interest
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon