The difference between simple interest and compound interest of a certain sum of money at 10% per annum for 1 year is Rs.1800. Then the sum is: (Interest being compound half yearly)
Answer & explanation
Correct answer: option 4
Simple interest ⇒ 10%
Compounded interest ⇒ 5% + 5% + \(\frac{5 × 5}{100}\)% ⇒ 10.25%
Diff. b/w C.I & S.I. for two years ⇒ 10.25% - 10% ⇒ 0.25%
ATQ,
0.25% of P = 1800
1% of P = \(\frac{1800}{.25}\)
100% of P = \(\frac{1800}{25}\) × 10000
Principal = Rs.720000