Question

Question 9
Find the amount which Ram will get on Rs 4,096, if he gave it for 18 months at $12\frac{1}{2}\%$ per annum, interest being compounded half yearly.

Answer 1

Here, Principal (P) = Rs 4096
Rate of Interest (R) = $12\frac{1}{2}=\frac{25}{2}\%$ = (Compound half yearly)
Time (n) = 18 months =$1\frac{1}{2}$ years=3 years (Compound half yearly)
Amount (A) = $P(1+\frac{R}{100})=10000{(1+\frac{25}{4\times 100})}^3=4096{(1+\frac{1}{4\times 4})}^3$
$=4096{\left(\frac{17}{16}\right)}^3=4096\times \frac{17}{16}\times \frac{17}{16}\times \frac{17}{16}$
=Rs. 4,913