Question

44. If the rate of interest is 8% per annum and 10000 lent at the compound interest half-yearly, then calculate the equivalent simple rate of interest for the first year? RRB NTPC (Phase-1) 20, (1) 8.16% (2) 9% (3) 7% (4) 10%

11th - 12th Class

Maths

Solution

4.0 (1 ratings)

44. (1) Principal ( =₹ 10000 ), Rate of interest ( =8 % ) We know that, at the compound interest of half yearly, [ begin{array}{ll} & r=frac{8}{2}=4 % text { and } & t=1 times 2=2 mathrm{yr} end{array} ] Amount will be after one year [ begin{array}{l} =10000left(1+frac{4}{100}right)^{2} =10000 times frac{26}{25} times frac{26}{25} =₹ 10816 end{array} ] So, equivalent simple rate of interest [ =frac{(10816-10000) times 100}{10000 times 1}=frac{816 times 100}{10000} ] [ =8.16 % ]