Question

Rs. $16,000$ invested at $10\%$ p.a. compounded semi-annually amounts to Rs. $18,522$. Find the time period of investment.

• A. $0.5$ years
• B. $1.5$ years
• C. $2$ years
• D. $2.5$ years

Answer 1

Answer: (B)

$1.5$ years

$P$=$Rs.16,000$

$A=Rs.18,522$

$i=10\times \frac{1}{2}\%=5\%=0.05$

$n=?$

We have $A=P(1+i{)}^n$

$18,522=16,000(1+0.05{)}^n$

$\frac{18522}{16000}=(1.05{)}^n$

$\left(1.157625\right)=(1.05{)}^n$

$(1.05{)}^3=(1.05{)}^n$

$n=3$

Therefore time period of investment is three half years i.e., $1.5$ years.