Practicing Success
On a certain sum of money lent out at 16% per annum, the difference between the compound interest for 1 year, payable halfyearly, and the simple interest for 1 year is Rs. 60. The sum is: |
Rs. 937.5 Rs. 9,000 Rs. 9,365 Rs. 9,375 |
Rs. 9,375 |
Simple interest of 1 year = 16% Rate when interest compounded half yearly = \(\frac{16 }{2}\) = 8% For 1 years ( compounded half yearly ) , n = 2 Rate of compound interest for 1 year when rate is compounded half yearly = 8 + 8 + \(\frac{8 × 8 }{100}\) = 16 + 0.64 = 16.64% Difference b/w CI and SI = 16.64 - 16 = 0.64% ATQ, 0.64% = 60 1% = \(\frac{60 }{0.64}\) = 93.75 The sum invested = 100% = 100 ×93.75 = Rs. 9375 |