Question

WhatsApp invested at 4% per annum compounded semi annually amount Rupees 7803 at the end of 1 year

Answer 1

Compound interest accumulation factor :

P × (1 + i)ⁿ

P = principle amount

i = 4/2 = 2% — it is compounded semiannually

n = 1 × 2=2

Doing the substitution:

P(1.02)² = 7803

P = 7803/1.0404= 7500

Rupees 7500 — deposited amount