Doubt On Compuond Interest

[acd_indian]

hi all

i had this query. normally to calculate the first year's interest the compound and simple interests will be equal right?

now can this be generalised to periods less than a year say 6 months as well?

here is the exact problem.

a seller fixes two prices on his goods- one for ready sale and the other for 6 months credit, interest being calculated at 12.5% per annum. if the credit price per article is rs. 26.56, what is its cash price?


plz help in solving this.

thanx
ashutosh

[mar2782]

yaar the funda is for the first time period of ur rate of intrest ...i.e if u are calculating it on per annum basis then for the first year and if ur rate is kinda per month then for the first month .or less period than that both S>i and C.i wld be same.....