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Mathematics

A certain sum of money is put at compound interest, compounded half-yearly. If the interest for two successive half-years are ₹ 650 and ₹ 760.50; find the rate of interest.

Compound Interest

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Answer

Difference between C.I. of two successive half-years = ₹ 760.50 - ₹ 650 = ₹ 110.50

∴ ₹ 110.50 is the interest of 12\dfrac{1}{2} year on ₹ 650.

By formula,

Rate of interest = 100×IP×T=100×110.50650×12=22100650\dfrac{100 \times I}{P \times T} = \dfrac{100 \times 110.50}{650 \times \dfrac{1}{2}} = \dfrac{22100}{650} = 34%.

Hence, the rate of interest = 34%.

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