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A sum of money is lent out at compound intersect for two years at 20% per annum. Compound intersect being reckoned yearly. If the same sum of money was lent out at compound interest at the same rate percent per annum, compound intersect being reckoned healf-yealry, it would have fetched Rs 482 more by way of interest in two years. Calcualte the sum of money lent out.

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To solve the problem step by step, we will follow the given information and calculate the sum of money lent out based on the compound interest calculated yearly and half-yearly. ### Step 1: Understand the Problem We need to find the principal amount (P) that was lent out at compound interest for 2 years at a rate of 20% per annum. The interest calculated yearly and half-yearly differs by Rs 482. ### Step 2: Calculate Compound Interest when Reckoned Yearly 1. **Given:** - Rate (R) = 20% per annum - Time (T) = 2 years 2. **Formula for Amount (A) when interest is compounded yearly:** \[ A = P \left(1 + \frac{R}{100}\right)^T \] 3. **Substituting the values:** \[ A = P \left(1 + \frac{20}{100}\right)^2 = P \left(1 + 0.2\right)^2 = P \left(1.2\right)^2 = P \times 1.44 \] 4. **Thus, the Amount (A) after 2 years is:** \[ A = 1.44P \] 5. **Calculate Compound Interest (CI) for yearly compounding:** \[ CI = A - P = 1.44P - P = 0.44P \] ### Step 3: Calculate Compound Interest when Reckoned Half-Yearly 1. **Given:** - Rate (R) = 20% per annum → Half-yearly rate = 10% - Time (T) = 2 years → Number of half-year periods = 4 2. **Formula for Amount (A) when interest is compounded half-yearly:** \[ A = P \left(1 + \frac{R/2}{100}\right)^{2T} \] 3. **Substituting the values:** \[ A = P \left(1 + \frac{10}{100}\right)^4 = P \left(1 + 0.1\right)^4 = P \left(1.1\right)^4 \] 4. **Calculating \( (1.1)^4 \):** \[ (1.1)^4 = 1.4641 \] So, \[ A = 1.4641P \] 5. **Calculate Compound Interest (CI) for half-yearly compounding:** \[ CI = A - P = 1.4641P - P = 0.4641P \] ### Step 4: Set Up the Equation Based on the Given Information 1. **According to the problem, the difference in interest is Rs 482:** \[ 0.4641P - 0.44P = 482 \] 2. **Simplifying the equation:** \[ 0.0241P = 482 \] ### Step 5: Solve for Principal (P) 1. **To find P:** \[ P = \frac{482}{0.0241} \approx 20000 \] ### Conclusion The sum of money lent out is Rs 20,000. ---
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ICSE-COMPOUND INTEREST (USING FORMULA)-EXERCISE 3(E)
  1. A sum of money is lent out at compound intersect for two years at 20% ...

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  2. Simple interest on a sum of money for 2 years at 4% growth rate is Rs ...

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  3. Find the compound interest to the nearest rupee on Rs 10,800 for 2(1)/...

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  4. The value of a machine, purchased two years ago, depreciates at the an...

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  5. The value of a machine, purchased two years ago, depreciates at the an...

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  6. Anuj and Rajesh each lent the same sum of money for 2 years at 8% simp...

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  7. Calculate the sum of money on which the compound interest (payable ann...

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  8. A sum of money was invested for 3 years, interest being compounded ann...

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  9. A sum of money is invested at 10% per annum compounded half-yearly. If...

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  10. Rohit borrows Rs 86,000 from Arun for two years at 5% per annum simple...

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  11. The simple interest on a certain sum of money for 3 years at 5% per an...

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  12. Nikita invests Rs 6,000 for two years at a certain rate of interest co...

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  13. Nikita invests Rs 6,000 for two years at a certain rate of interest co...

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  14. Simple interest on a sum of money for 2 years at 4% growth rate is Rs ...

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  15. Find the compound interest to the nearest rupee on Rs 10,800 for 2(1)/...

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  16. The value of a machine, purchased two years ago, depreciates at the an...

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  17. The value of a machine, purchased two years ago, depreciates at the an...

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  18. Anuj and Rajesh each lent the same sum of money for 2 years at 8% simp...

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  19. Calculate the sum of money on which the compound interest (payable ann...

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  20. A sum of money was invested for 3 years, interest being compounded ann...

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  21. A sum of money is invested at 10% per annum compounded half-yearly. If...

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