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 $$1\frac{1}{2}$$ years at 10% p.a., if the interest is compounded half yearly (nearest to Rs. 1)?

Solution (By Examveda Team)

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