What sum invested for 1 1/2 years compounded half yearly at the rate 8percent per annum will amount to rupees 140608.
Answers
Answer:
The principal value or sum is Rs.125000.
Step-by-step explanation:
Given : Sum invested for 1 whole 1 upon 2 years compounded half yearly at the rate 8% per annum will amount to rupees 140608.
To find : What is the sum ?
Solution :
The compound interest formula is
Where, A is the amount A=Rs.140608.
P is the principal
r is the rate of interest 8%.
Rate is compounded half yearly so, r=\frac{8}{2}=4\%r=
2
8
=4%
t is the time t=1 and half year = 2 half year
Time is compounded half yearly t=3 years
Substitute values in the formula,
140608=P(1+\frac{4}{100})^3140608=P(1+
100
4
)
3
140608=P(1+0.04)^3140608=P(1+0.04)
3
140608=P(1.04)^3140608=P(1.04)
3
140608=P(1.124864)140608=P(1.124864)
P=\frac{140608}{1.124864}P=
1.124864
140608
P=125000P=125000
Therefore, The principal value or sum is Rs.125000.