question_answer

Find the amount which Ram will get on Rs. 4096, if he gave it for 18 months at \[12\frac{1}{2}\] % per annum, interest being compounded half yearly.

Answer:

Here, P = Rs. 4096

\[R=12\frac{1}{2}%=\frac{25}{2}%=\frac{25}{4}\]

(Compounded half yearly)

Time (n) = 18 month =\[\frac{1}{2}\] years = 3 half years

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

\[=4096{{\left( 1+\frac{25}{4\times 100} \right)}^{3}}\]

\[=4096{{\left( 1+\frac{1}{16} \right)}^{3}}\]

\[=4096\times \frac{17}{16}\times \frac{17}{16}\times \frac{17}{16}\]

= Rs. 4913