₹ 10000 was lent for one year at 10% per annum. By how much more will the interest be, if the sum was lent at 10% per annum, interest being compounded half yearly?
Solution:
It is given that
Principal = ₹ 10000
Rate of interest (r) = 10% p.a.
Period = 1 year
We know that
A = P (1 + r/100)n
Substituting the values
= 10000 (1 + 10/100)1
By further calculation
= 10000 × 11/10
= ₹ 11000
Here
Interest = A – P
Substituting the values
= 11000 – 10000
= ₹ 1000
In case 2,
Rate (r) = 10% p.a. or 5% half-yearly
Period (n) = 1 year or 2 half-years
We know that
A = P (1 + r/100)n
Substituting the values
= 10000 (1 + 5/100)2
By further calculation
= 10000 × 21/20 × 21/20
= ₹ 11025
Here
Interest = A – P
Substituting the values
= 11025 – 10000
= ₹ 1025
So the difference between the two interests = 1025 – 1000 = ₹ 25
More Solutions:
- Find the population of the town at the end of two years.
- The present population of a town is 15625.
- The population of a city increase each year by 4%.
- The cost of a refrigerator is ₹ 9000.
- Dinesh purchased a scooter for ₹ 24000.
- What was the yearly produce of wheat two years ago?
- what was its value three years ago?
- Ahmed purchased an old scooter for ₹ 16000.
- Find the annual rate of growth of production of cars.