Arithmetichard · Past Paper

The difference between the compound interest compounded semi-annually and the simple interest on a certain sum of money at 10% per annum for 1 year is Rs 25. Find the sum.

ARs 8000
BRs 9000
CRs 10000
DRs 12000

✓ Correct Answer: CRs 10000

Semi-annual CI = P(1.05^2 - 1) = 0.1025P. SI = 0.1P. Difference = 0.0025P = 25. P = 25/0.0025 = 10000.

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