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    Question

    A certain sum of money invested at 20% per annum for 2

    years compounded annually, but if interest would have been compounded half yearly on the same amount, then Rs. 241 more interest would have been received. Find the sum of money invested.
    A Rs 10000 Correct Answer Incorrect Answer
    B Rs 5000 Correct Answer Incorrect Answer
    C Rs 12000 Correct Answer Incorrect Answer
    D Rs 15000 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the certain amount of money invested be Rs.‘P’.

    When interest is compounded yearly,

    So, CI = P(1 + 20/100) 2  – P = P[(1 + 20/100)  2  – 1] = P(1.44 – 1) = 0.44 × P

    When interest is compounded half yearly,

    And, CI = P(1 + 10/100)  4  – P = P[(1.1)  4  – 1] = P(1.4641 – 1) = 0.4641 × P

    According to question, 0.4641×P – 0.44×P = 241

    0.0241×P = 241

    P = 241/0.0241 = 10000

    Therefore, the certain amount of money invested is Rs. 10000.

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