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    Question

    A sum of money amounts to Rs. 2040 at 18% per annum simple

    interest after 2 years. If the same sum is invested at the same rate of interest, but compounded half-yearly, what will be its value after 1 year?
    A Rs 1782.15 Correct Answer Incorrect Answer
    B Rs 1780.25 Correct Answer Incorrect Answer
    C Rs 1777.15 Correct Answer Incorrect Answer
    D Rs 1812.15 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution


    Amount = SI + P
    => 2040 = (P * 18 * 2)/100 + P
    => 2040 = 34P/25
    => P = 2040 * 25/34
    => P = Rs. 1500
    When amount is calculated on the same sum of money for 1 year at the same rate of interest compounded annually and the interest is calculated half yearly.
    So, Amount = 1500 * (1 + 9/100)2 = Rs. 1782.15

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