Question

In what time will rs 6250 amount to rs 6632.55 at 4% compounded interest payable half - yearly

Answer 1

3/2 years

Step-by-step explanation:

Since Interest accumulates half yearly so effective rate = R/2 = 4/2 = 2.

And effective time is 2t.

∵ 6250 [1 + 2/100]2t = 6632.55

⇒ (1 +2/100)2t = 663255/625000 = 132651/125000 = (51/50)3

⇒ (51/50)2t = (51/50)3

⇒ 2t =3

∴ t = 3/2 years