In what time will ₹3,90,625 amount to ₹4,56,976 at 8 % per annum, interest being compounded half-yearly?
Answer & explanation
Correct answer: option 1
Interest is compounded half - yearly,
Actual rate of interest = \(\frac{8}{2}\)% = 4%
From the formula for compound interest, we know,
Amount = P(1+$\frac{R}{100})^t$
4,56,976 = 3,90,625 [ 1 + \(\frac{4}{100}\) ]
\(\frac{456976}{390625}\) = [ 1 + \(\frac{4}{100}\) ]
\(\frac{((26)²)²}{ ((25)²)² }\) = [ \(\frac{26}{25}\) ]n
So, n = 4
As interest is compounded half yearly .
So, time = 4 years