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A person invests in the stock market at 10% per annum, compounded annually, for 1 years. If the interest was compounded half-yearly, he would have received Rs. 75 more. Find the sum that invest in the stock market.1). Rs. 40,0002). Rs. 35,0003). Rs. 30,0004). Rs. 38,000 |
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Answer» When INTEREST compounded annually, then PERSON get 10% of the TOTAL sum If interest compounded half-annually, Interest rate = 5% and time t = 2 As we KNOW, 5 + 5 + (5 × 5)/100 = 10.25% If interest compounded half-annually, then person get 10.25% of the total sum According to the question ⇒ 10.25% – 10% = 75 ⇒ 0.25% = 75 ⇒ 100% = 30,000 ∴ The sum that invest in the stock market = Rs. 30000 |
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