Question

Find the amount that David would receive, if he invests ₹16384 for 18 months at 25/2% per annum, the interest being compounded half yearly.​

Answer 1

Given :-  

• Principal Amount ( P ) = Rs. 16384  
• Rate of Interest ( R ) = 25/2 = 12.5 %  
• Compounded half-yearly for 18 months ( n ) = 1.5  

To Find :-  

• The Amount ( A ) David will receive  

Solution :-  

As we know that when interest is compounded half yearly , we have :-  

$\sf \bigstar \; A = P \bigg\{1 +\dfrac{R}{200} \bigg\}^{n}$

→ Let's solve !

$\sf \implies 16384 \bigg\{ 1 + \dfrac{12.5}{200} \bigg\} ^ {2 \times 1.5}$

$\sf \implies 16384 \{ 1.0625\}^{3}$

$\sf \implies A = Rs. \; 19,652$

∴ David will receive Rs. 19,652 after 18 months