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A sum of 40000 was lent for one year at 16% per annum. If the same sum is lent for the same time and at the same rate percent but the compound half-yearly, how much more will the interest be? |
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Answer» Given :Principle amount P = 40,000AndRate r = 16%Time t = 1 year So , Simple interest = 40000 × 16 × 1100 = 400 × 16 = Rs. 6400 And As interest compound half yearly we know formula , As : Amount = P (1 + r2100)2t ,SoCompound money after 1 year compounded half yearlySo,Amount = 40000 ( 1 + 16200)2 = 40000( 1 + 450)2 = 40000( 5450)2 = 40000 × 54 × 5450 × 50 = 16 × 54 × 54 = Rs. 46656Then, Compound interest = 46656 – 40000 = 6656 The more interest would be = 6656 – 6400 = Rs. 256 |
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