Question

Find the amount that David would receive of he invests 8192 for 18 months 12.5 per annum if the intrest being compounded half yearly

Answer 1

Answer:

9826$

Step-by-step explanation:

It is given that:

• The principal is 8192$
• The time is 18 months
• The rate is 12.5% per year
• Interest is compounded half yearly

Therefore, the interest rate per half year 'r' = 12.5%/2 = 6.25% = 0.0625

The number of half years 't' = 18/6 = 3.

$Amount=P(1+r)^t\\Amount=8192(1+0.0625)^3\\Amount=9826$