Question

A sum of money amounts to Rs. 11910.16 in 1 1/2 years at 12% per annum interest being compounded semi annually. Find the sum and the interest.​

Answer 1

Answer:

Sum = 10,000

Interest = 1,910.16

Step-by-step explanation:

Given:

Let the principle = p

Time = 1 ¹/₂ yrs i.e. 3/2

Rate of intrest = 12% p.a.

The sum amounts to 11,910.16

Interest compounded semi annually

$Amt = P(1 + i)^n$

$11,910.16 = p( {1 + 0.06})^{2n}$

$11,910.16 = p( {1.06})^{2n}$

$11,910.16 = P(1+0.06)^3$

$11,910.16 = P(1.06)^3$

$(1.06)^3 = 1.191016$

$11,910.16 = 1.191016p$

P = 11,910.16 ÷ 1.191016

P = 10,000

Interest = Amt - Principle

Interest = 11,910.16 - 10,000

Interest = 1,910.16