# The simple interest on a sum of money for 2 years at 12% per annum is ?1380. Find (1) the sum of money (2) the compound interest on this sum for one year payable half- yearly at the same rate. This is in my course ...

Dear Student,

We have time = 2 years    Rate of Interest = 12%   and   Simple Interest = 1380
So,

Principal =

So, the Principal Amount is Rs 5750.

Now, Amount  = $P\left(1+\frac{R}{100}{\right)}^{T}$

So, the Compound Interest is (6460.7 - 5750) = Rs 710.7

Hope this information clears your doubts.

Regards

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