Question

a sum of rs 25000 invested at 8% pa compounded annually amounts to rs 29160 compute the time period​

Answer 1

Since we have given that

Principal amount (P) = 25000

Rate of interest = 8% compounded semi-annually

Amount = 28121.60

As we know the formula for "Compound Interest for semi-annually":

\begin{gathered}A=P(1+\frac{r}{200})^{2n}\\\\28121.60=25000(1+\frac{8}{200})^{2n}\\\\\frac{28121.60}{25000}=(1+\frac{1}{25})^{2n}\\\\\frac{28121.60}{25000}=\frac{26}{25}^{2n}\\\\1.124=\frac{676}{625}^n\\\\n=1.5\ approximately\end{gathered}

A=P(1+

200

r

)

2n

28121.60=25000(1+

200

8

)

2n

25000

28121.60

=(1+

25

1

)

2n

25000

28121.60

=

25

26

2n

1.124=

625

676

n

n=1.5 approximately