Question

Hari purchased Relief Bonds for RS 1000, a sum
which will fetch him rs 2000 after 5 years.Find
the rate of interest if the interest is compounded
half-yearly

Answer 1

Given:

The sum of money = Rs. 1000

Amount fetched after 5 years = Rs. 2000

To find:

The rate of interest if the interest is compounded  half-yearly

Solution:

We know that the formula to calculate the amount if the interest is compounded half-yearly is as follows:

$\boxed{\bold{A = P [1+ \frac{\frac{R}{2} }{100} ]^2^n}}$

Now, by substituting the given values in the formula, we get

$2000 = 1000 [1+ \frac{\frac{R}{2} }{100} ]^2^\times^5}}$

$\implies 2 = [1+ \frac{\frac{R}{2} }{100} ]^2^\times^5}}$

$\implies 2 = [1+ \frac{R }{200} ]^1^0}}$

taking root of 10 on both sides

$\implies \sqrt[10]{2} = 1 + \frac{R}{200}$

using calculator→ $\sqrt[10]{2}$ = $2^\frac{1}{10}$ = 1.0717

$\implies 1.0717 = 1+\frac{R}{200}$

$\implies 1.0717 -1 = \frac{R}{200}$

$\implies R = 0.0717 \times 200$

$\implies \bold{R = 14.34\%}$

Thus, the rate of interest if the interest is compounded  half-yearly is 14.34%.

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Answer 2

Answer:

it is the correct answer Hope it brings Smile on your face thanks