Question

Find the sum that 4096 will amount to in 18 months at 12.5%per annum the interst being compounded half yearly

Answer 1

Given sum = 4096

           Time = 18 months  =  3 years

            r = 25/4(compounded half yearly)


We know that A = p(1+r/100)^n

                           = 4096(1+25/4*100)^3

                           = 4096(17/16)^3

                           = 4913.


Hope this helps!