Question

In what time will rs. 3300 becomes rs. 3399 at 6% per annum interest compounded half-yearly ?

a.Quarter months

b.Half year

c.2 years

d.1 year

Answer 1

P = Rs. 3300

A = Rs. 3399

R = 6% per annum

Let the time be n years.

Compound interest is taken half-yearly.

A = P*[1+ (R/2*100)]2n

3399 = 3300(1+3/100)2n

(1.03)2n = 3399/3300

(1.03)2n = (1.03)1

Thus, 2n = 1 year

n = 1/2 year = 6 months.