Question

In how many years will rs 3375 become rs 4096 at 13 1/3 percentage p.a where interest is compounded half_yearly

Answer 1

Step-by-step explanation:

Given  

In how many years will rs 3375 become rs 4096 at 13 1/3 percentage p.a where interest is compounded half_yearly

                                                  Compound Interest

•   Given p = Rs 3375
•             A = Rs 4096
•              R = R/2 = 40/3 / 2 = 20 / 3 %
•     We know that  
•          Amount = P (1 + r / 100)^n
•                 4096 = 3375 (1 + 20/300 )^n        
•                4096 / 3375 = ( 32 / 30)^n
•                   1.21 =  (32 / 30)^n
• Taking log on both sides we get
•             Log 1.21 = log (1.06)^n
•    Log a^b = b log a
•             Log 1.21 = n log 1.06    
•         0.0827 = n x 0.0253
•       So n = 0.0827 / 0.0253
•   Or n = 3.26 years