Question

What sum is invested for 1½ years at the rate of 4% p.a. compounded half -yearly

which amounts to ` 1,32,651?

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Answer 1

Principal=?
Rate =4%/2=2%
Time = 1½ =3/2×2=3
Amount =132651

Amount=P(1+R/100)^T
132651=P(1+2/100)³
132651=P(102/100)³
132651=P×51/50×51/50×51/50
132651×50×50×50/51×51×51=P
125000=P