Question

What sum will become rs.9826 in 18 mnths if rate of interest is 5% per annum and interest is compounded annually?

Answer 1

Future value(A)=9826 time(t) = 18 months (1.5 years)

rate of interest(r)= 5% p.a compounded annually.

present vale(P)=?

A=P(1+r)^t

9826=P(1+5%)^1.5

P=9132.56. Ans