Question

question:
What sum invested at 4% per annum compounded semi-annually amounts to
7803 at the end of one year?​

Answer 1

QUESTION:

What sum invested at 4% per annum compounded semi-annually amounts to

7803 at the end of one year?

Answer:

It is given that

Amount (A) = 7803

Rate of interest (r) = 4% p.a. or 2% semi-annually

Period (n) = 1 year or 2 half years

We know that

A = P(1+r/100)

n

Substituting the values

=7803(1+2/100)

2

By further calculation

=7803=P(51/50)

2

⟹P=7803×50/51×50/51

=7500

Hence, the principal is 7500.

Answer 2

Amount = 7803

rate of interest = 4% p.a or 2% semi - annually

period = 1 year or half two year

we know that

A = P ( 1 + R/100)n

substituting the value

7803 ( 1 + 2/100)2

by further calculation

7803 = P ( 51/50)2

P = 7803 × 50/51 × 51/50

• 7500