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19 vote

A person invests in the stock market at 10% per annum, compounded annually, for 1 years. If the interest was compounded half-yearly, he would have received Rs. 75 more. Find the sum that invest in the stock market.

Asked on by | Votes 19 | Views: 84 | Tags: interest     | simple interest     | quantitative aptitude     | Add Bounty

A person invests in the stock market at 10% per annum, compounded annually, for 1 years. If the interest was compounded half-yearly, he would have received Rs. 75 more. Find the sum that invest in the stock market.
1). Rs. 40,000
2). Rs. 35,000
3). Rs. 30,000
4). Rs. 38,000


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1 answers

21 vote
Answered by on | Votes 21 |

When interest compounded annually, then person get 10% of the total sum

If interest compounded half-annually,

Interest rate = 5% and time t = 2

As we know, 5 + 5 + (5 × 5)/100 = 10.25%

If interest compounded half-annually, then person get 10.25% of the total sum

According to the question

⇒ 10.25% – 10% = 75

⇒ 0.25% = 75

⇒ 100% = 30,000

∴ The sum that invest in the stock market = Rs. 30000

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