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

1.	Find the amount that David would receive if he invests Rs. 8192 for 18 months at 12 ½ % per annum, the interest being compounded half-yearly.
Answer» Given details are, Principal (p) = Rs 8192 Rate (r) = 12 ½ % per annum = 25/2×2 = 25/4% = 12.5/2% (half yearly) Time (t) = 18 months = 18/12 = 1 ½ years = (3/2) ×2 = 3years By using the formula, A = P (1 + R/100)ⁿ = 8192 (1 + 12.5/2×100)³ = 8192 (212.5/200)³ = Rs 9826 ∴ Amount is Rs 9826.

Find the amount that David would receive if he invests Rs. 8192 for 18 months at 12 ½ % per annum, the interest being compounded half-yearly.

Answer»

Given details are,

Principal (p) = Rs 8192

Rate (r) = 12 ½ % per annum = 25/2×2 = 25/4% = 12.5/2% (half yearly)

Time (t) = 18 months = 18/12 = 1 ½ years = (3/2) ×2 = 3years

By using the formula,

A = P (1 + R/100)ⁿ

= 8192 (1 + 12.5/2×100)³

= 8192 (212.5/200)³

= Rs 9826

∴ Amount is Rs 9826.