In how many years will rs 3375 become rs 4096 at 13 1/3 percentage p.a where interest is compounded half_yearly
Answers
Answer:
Principal, P = Rs. 3375
Amount, A = Rs. 4096
Since it is compounded on a half-yearly basis, so,
Let the time period be “n” half years.
And the rate of interest, R = R/2 = ½ * 13 = %.
The formula for calculating the amount in compound interest is given as,
A = P [1+ R/100]ⁿ
Substituting the given values, we get
4096 = 3375 [1+ (20/300)]ⁿ
⇒ 4096/3375 = [1 + 2/30]ⁿ
⇒ 1.21 = [32/30]ⁿ
Taking log on both sides
⇒ log 1.21 = log (1.06)ⁿ
⇒ log 1.21 = n log 1.06 ….. [since log aᵇ = b log a]
⇒ 0.0827 = n * 0.0253
⇒ n = 0.0827/0.0253
⇒ n = 3.2 ≈ 3 half years
We got n = 3 half years, therefore the required time period will be = 3/2 years = 1.5 years
Thus, in 1.5 years rs 3375 become rs 4096 at 13 1/3 percentage p.a. where the interest is compounded half-yearly.