A certain sum amount to Rs. 15,500 in 2 years at 12% p.a. simple interest. The same sum will amount to what in 11/2 years at 10% p.a., if the interest is compounded half yearly (nearest to Rs. 1)?

Answer: Option A

Solution

Answer: Option A

Solution:

$$\begin{array}{rl}& 15500-\text{P}=\frac{\text{P}\times 12\times 2}{100}\\ & 1550000-100\text{P}=24\text{P}\\ & 124\text{P}=1550000\\ & \text{P}=\frac{1550000}{124}\\ & \text{P}=\text{Rs}\text{. }12500\\ & \text{Half yearly, Rate}=5\%\end{array}$$