Question

A person invested a certain amount of money at 10% annual interest, compounded half-yearly. After one and a half years, the interest and principal together became Rs. 18522. The amount, in rupees, that the person had invested is 

Answer 1

Formula Used:

Amount accumulated on a principal amount, when compounded half-yearly is obtained as:

Amount = P × [1 + (R/200)]²ⁿ 

Calculation:

18522 = P × [1 + (10/200)]2 × 1.5  

⇒ 18522 = P × (21/20)³

⇒ 18522 = P × (9261/8000)

⇒ P = 16000

∴ The amount he invested is Rs.16000