Question

How many rupees would Swapnil deposit in the bank for 6 months at the rate of 4.5%, so as to get an interest of ₹ 828?

Answer 1

The compound interest accumulation factor :

P(1 + i)ⁿ

P = p

i = 4.5%

n = 6/12 = 0.5

Accumulated amount = p + 828

P + 828 = p (1.045)^0.5

P + 828 = 1.02225p

828 = 1.02225p - p

828 = 0.02225p

p = 828/0.02225

P = 37213.48

Rs 37213.48