the SI on a sum of money for 2 years at 4% pa is Rs 340,a)find the sum of money,2)the CI on the sum for 1 year payable half yearly at the same rate

Dear Student,

Please find below the solution to the asked query:

Given : The S.I. on a sum of money for 2 years at 4% pa is Rs 340,

Let Sum of money =  P   and from given information :  r = 4 % per annum and t = 2 years

a ) We know :  Simple interest  =  P×r×t100 , So

340 = P×4×2100P =340 ×1008P =42.5 ×100P =4250

So,

Sum of money  =  Rs. 4250                                            ( Ans )

b ) We know formula for compound interest when compounded half yearly : 

Compound interest = P1 +r21002×t- P , Here P = 4250  , r  = 4 % and t ( in years ) = 1

So,

42501 +421002×1 - 425042501 +21002 - 425042501 +1502 - 4250425051502 - 42504250 ×5150×5150- 42501.7 ×51×51- 42504421.7 - 4250Rs. 171.70                  ( Ans )

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