Question
Mohit invested a certain amount at compound interest for
1 year at the rate of 20% per annum, compounded half-yearly. If the interest received by him is Rs. 1050, then find the principal amount.Solution
Time = 1 year = 2 half-years Rate = 20% per annum = 10% per half-year ATQ; P x (1 + 10/100)² - P = 1050 P x (1.1)² - P = 1050 1.21P - P = 1050 0.21P = 1050 'P' = 1050 ÷ 0.21 'P' = 5000
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