Question

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 and interest is compounded half yearly.

• A. Rs. 4,913
• B. Rs. 5289
• C. Rs. 4356
• D. Rs. 5634

Answer 1

The correct option is A

Rs. 4,913

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) = $P{(1+\frac{R}{100})}^n=10000{(1+\frac{25}{4\times 100})}^3=4096{(1+\frac{1}{4\times 4})}^3$
$=4096{\left(\frac{17}{16}\right)}^3=4096\times \frac{17}{16}\times \frac{17}{16}\times \frac{17}{16}$
= Rs. 4,913