Question

Find the amount which Ravi will get on 4096 if he will give it for 18 month at 12.5% Interest being compounded Annually

Answer 1

Solution:

Given:

 Principal (P)= ₹4096

Rate of interest(R) =

$12 \frac{1}{2}\%pa$

$= \frac{25}{2} \%pa$

Time period = 18 months = 18 /12= 3/2 years

A = P(1 + R/200)^2n   [for half yearly]

A = 4096 (1 + 25/ 2 x200)^3/2 x2

A  = 4096 (1 + 25/400)^3

=4096(1 + 1/16)

= 4096(17/16)^3

= 4096( (17 x17 x 17 ) / (16 x 16 x16))

=4096( (17 x17 x 17 ) / (256 x16))

= 4096( (17 x17 x 17 ) / (4056))

= 17 x17 x17 = 289 x 17

A=₹ 4913

 Hence Ravi will get ₹ 4913 after 18 months