Find the amount that David would receive if he invests Rs 8192 for 18 months at

Question:

Find the amount that David would receive if he invests Rs 8192 for 18 months at $12 \frac{1}{2} \%$ per annum, the interest being compounded half-yearly.

Solution:

Given:

$\mathrm{P}=\mathrm{Rs} 8,192$

$\mathrm{R}=12.5 \%$ p. a.

$\mathrm{n}=1.5$ years

When the interest is compounded half - yearly, we have :

$\mathrm{A}=\mathrm{P}\left(1+\frac{\mathrm{R}}{200}\right)^{2 \mathrm{n}}$

$=\operatorname{Rs} 8,192\left(1+\frac{12.5}{200}\right)^{3}$

$=\operatorname{Rs} 8,192(1.0625)^{3}$

$=\operatorname{Rs} 9,826$

Thus, the required amount is Rs 9,826 .

Leave a comment

Close

Click here to get exam-ready with eSaral

For making your preparation journey smoother of JEE, NEET and Class 8 to 10, grab our app now.

Download Now