# 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,

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  =  $\frac{\mathrm{P}×\mathrm{r}×\mathrm{t}}{100}$ , So

So,

Sum of money  =  Rs. 4250                                            ( Ans )

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

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

So,