Question

How long will it take for RS 9000 to become RS 11979 at 20% per annum compound half yearly?

Answer 1

Answer:

Given:

Present value =₹ 9000

Interest rate =10% per annum

Time =2 years 4 months = (2+

3

1

) years= 7/3 years

To find the amount we have the formula,

Amount (A)=P(1+(r/100))

n

where P is the present value, r is the rate of interest and n is time in years.

Now substituting the values in above formula we get,

∴A=9000(1+10/100)

2

[1+(1/3×10)/100]

⇒A=9000(1+1/10)

2

(1+1/30)

⇒A=9000(11/10)

2

(31/30)

⇒A=9000×121/100×31/30=9×121×31/3

⇒A=₹ 11253

And Compound interest =A–P

=11253–6000=₹ 2253