A business man invests same amount of sum in two projects With the same rate or interest 12% p.a. for 1.5 years, whereas the project 1 is based on the simple interest and project 2 is based on the compound interest compounded half yearly. If he earns an excess interest of 1377 in the project 2, find the sum invested.
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Step-by-step explanation:
To find compound interest when interest is compounded half-yearly we use formula
A=P(1+
2
r
)
2n
Here, P=Rs.12000,r=10% and n=1.5 years
Hence,A=12000(1+0.05)
3
A=12000×1.157625
A=Rs.13891.5