Question

a sum of rupees 16000 earns a compound interest of rupees 2522 in 18 months and the interest is compounded half yearly find the rate of interest please answer its urgent

Answer 1

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Answer 2

a sum of rupees 16000 earns a compound interest of rupees 2522 in 18 months and the interest is compounded half yearly. The rate of interest is 10% .

If Principal amount is given as (P) = Rs 16000

Number of terms (T) = 18months/6months = 3     [As interest is compounded half yearly (6 months) ]

Rate of interest  = r%

n = 200                                                                         [As interest is compounded half yearly (6 months) ]

Amount (A) = Principal (P) + Compound Interest (C.I.)

A = Rs 16000 + Rs 2522 = Rs 18522

Also, amount is given in compound interest as :

A = P(1 + [r/n])^3

⇒18522 = 16000( 1 + [r/200])^3

⇒ ( 1 + [r/200])^3 = 18522/16000

⇒ ( 1 + [r/200]) = $\sqrt[3]{\frac{18522}{16000} }$

⇒ ( 1 + [r/200]) = 1.05

⇒ r/200 = 0.05

⇒ r = 200 × 0.05 = 10%

Thus, rate of interest is 10%