Question

find the amount that David would receive if he invest rs 8192 for 18 months 12 1/2 per annum the interest being compounded half-yearly

Answer 1

Heya ✋

Given that

P = ₹15,625

R = 8 % p.a.

T = 1 and half years

= 3/2 half years

Solution

When the interest is compounded half - yearly

A = P(1+R/200)^2n

= 15,625(1+8/200)^2 × 3/2

= 15,625(200+8/200)^2

= 15,625(208/200)^2

= 15,625(26/25)^2

= 15,625 × 676/625

= ₹16,900

C.I. = A - P

= ₹(16,900 - 15,625)

= ₹1,275