The difference between simple interest and compound interest of a certain sum of money at 10% per annum for 1\(\frac{1}{2}\) year is ₹244. Then the sum is: (Interest being compound half yearly)
Answer & explanation
Correct answer: option 1
Rate of interest = 10% pa
Rate of interest = 5% half yearly
5% = \(\frac{1}{20}\),
Let Principal = Rs.8000/-
Difference b/w C.I. and S.I. = 20 + 20 + 20 + 1 = 61
ATQ,
61R =244
1R = 4
Hence, Principal = 8000R = 8000 × 4 = Rs.32000/-