Question

What sum of money will become ₹ 7986 in 18 months if the rate of interest is 20% per annum and the interest is compounded half yearly?​

Answer 1

Answer:

26620 is the loan amount

Answer 2

Answer:

Given:

Principal = Rs 6000

Rate of interest = 20% p.a

Time period = 18 months

Concept used:

Amount = P[1 + (R/100)]T

Where P → Principal R → rate of interest T → time period

Here, since compounded half-yearly, R = R/2 and T = 2T

Calculation:

T = 18 months = 3/2 years

CI = A - P

CI = Pl{1 + (R/200)}2 × T = 6000{1 + (20/200)}2 × (3/2)

⇒ 6000 × (11/10)3 = Rs. 7986

∴ The compound interest obtained is Rs 7986.

Amount = 6000 × 110/100 × 110/100 × 110/100

Amount = 6 × 11 × 11 × 11 = 7986