Question

Find the sum which amounts to Rs 9261 at 10% per annum compound interest for 18 months ,interest payable half yearly

Answer 1

Find the sum which amounts to Rs 9261 at 10% per annum compound interest for 18 months ,interest payable half yearly

$A=P(1+\frac{r}{n})^{nt}$ , where A is amount , r is rate =10% = 0.10 , n is intervals of compounding n=2 , t is time = 18 months=1.5 years

Lets plug in

$9261=P(1+\frac{0.10}{2})^{2*1.5}$

$9261 = P(1.002)^{3}$

$9261 = P(1.006012008)$

divide both sides by 1.006012008

$P= Rs 9205.6555$