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+(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+(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`