Question
Download Solution PDFFind the sum of Rs 5000 at 20% per annum for 18 month, when the interest is compounded half yearly.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Sum = Rs. 5000
Rate = 20%
Time = 3/2 year
Concept used:
When the rate is calculated half-yearly,
R becomes R/2.
T becomes 2T.
Formula used:
A = P(1 + R/100)T
C.I. = A - P
Where,
A = Amount
P = Principal or Sum
T = Time
R = Rate
C.I. = Compound interest
Calculation:
The rate of interest is calculated half-yearly,
R = 10% and T = 3 years
A = P(1 + R/100)T
⇒ A = 5000 × (1 + 10/100)3
⇒ A = 5000 × (11/10)3
⇒ A = 5000 × 1331/1000
⇒ A = Rs. 6655
∴ The amount is Rs. 6655
Last updated on Jan 29, 2025
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