Question

What sum invested for 1 1/2 years compounded half-yearly at the rate 8% per annuam will amount to rupees l140608 ?

Answer 1

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.