The difference between the simple and the compound interest compounded every six months at the rate of 10 percent per annum at the end of two years is Rs. 124.05. What is the sum?
Correct Answer: Rs. 8000
Explanation:
Let the sum be Rs. P, then
∵ [ P(1 +5/100)4 - P] - [(P x 10 x 2)/100 ] = 124.05
Solving the above equation,we get P = Rs. 8000.
