In what time will Rs 4400 become Rs 4576 at 8%

Question:

In what time will Rs 4400 become Rs 4576 at 8% per annum interest compounded half-yearly?

Solution:

Let the time period be $\mathrm{n}$ years.

$\mathrm{R}=8 \%=4 \%$ (Half $-$ yearly $)$

Thus, we have :

$\mathrm{A}=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$

$4,576=4,400\left(1+\frac{4}{100}\right)^{\mathrm{n}}$

$4,576=4,400(1.04)^{\mathrm{n}}$

$(1.04)^{\mathrm{n}}=\frac{4,576}{4,000}$

$(1.04)^{\mathrm{n}}=1.04$

$(1.04)^{\mathrm{n}}=1.04^{1}$

On comparing both the sides, we get:

n = 1

Thus, the required time is half a year.

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