Question

Ashok invests a certain sum of money at 20% per annum, compounded yearly. Geeta invests an equal amount of money at the same rate of interest per annum compounded half- yearly. If Geeta gets Rs. 33 more than Ashok in 18 months, calculate the money invested.

Answer 1

Let money invested=P
Amount`(A_1)=P(1+R/100)^t`
`A_1=P(1+20/100)^(3/2)`
`A_1=P(1+1/5)^(3/2)`
`A_1=P(6/5)(11/10)`
`A_2=P(1+20/(200))^(3/2*2)`
`A_2=P(1+1/10)^3`
subtracting equation 1 from equation 2
`P(1331/1000)-P(6/5)(11/10)=33`
`P(1.331-66/50)=33`
`P(1.331-1.32)=33`
`P=3000Rs`.