Question
In what time will Rs. 25000 amount to Rs. 26530.20 @ 4%
compound interest payable half-yearly?Solution
T = 3/2 years; Since interest is compounded half-yearly, R = 4/2 = 2% p.a. and T = 2t years A = P [1+ (R/100) ]t ⇒ 26,530.20 = 25,000 [1+ (2/100) ]2t ⇒ (26530.20/25000) = (102/100) 2t ⇒ (132651/125000) = (102/100) 2t ⇒ (51/50) 3 = (51/50) 2t ⇒ 2t = 3 yrs ⇒ t = 3/2 years = 1 year and 6 months
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