Question

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 %
]

# 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%

Solution