Question

What principal will amount to 9826 in
15 years at 12.5% p.a. compounded
half-yearly?​

Answer 1

Answer:

A = P (1 + r/n) (nt)

where,

A is the amount,

r is the rate,

P is the principal,

n is the no. of times the interest is compounded per year

and t= time period.

given, A= Rs. 9826,

t=3/2 year,

r=12.5%,

n=2 (since the intrest is compounded half yearly)

P = A/(1 + r/n) (nt)

P = 9826/ (1 + 12.5/2) (2*3/2)

P = 9826/ (7.25) (3)

P= 9826/ 381.08

P=25.78

Therfore, the required principal amount is Rs. 25.78

Answer 2

Let the principal be $ P . R = 2 ½ % = 5/2 % = 2.5 % n = 18 months = 18/12 = 3/2 years Amount = A = $ 9826 As the interest is compounded half yearly then A = P ( 1 + r/2) 2n...