At what rate of compound interest per annum, sum of Rs 20000 becomes Rs 23152.50 in 1 year 6 months compounded half yearly? |
10% per annum 5% per annum 12% per annum 8% per annum |
10% per annum |
Amount = P$(1 + \frac{R}{100})^t$ Here, Amount = Rs 23152.50 P = Rs 20000 Time = 1 year 6 months = 3 compounds because it is compounded half yearly Thus, 23152.50 = 20000$(1 + \frac{R}{100})^3$ $\frac{23152.50}{20000} = (1 + \frac{R}{100})^3$ $\sqrt[3]{\frac{23152.50}{20000} } = \frac{100 + R}{100}$ Solving, R = 5% Rate of compound interest per annum = 10% per annum
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