3 Tutor System
Starting just at 265/hour

# 9. Find the amount which Ram will get on ₹ 4,096, if he gave it for 18 months at $$12\frac { 1 }{ 2 }$$ per annum, interest being compounded half yearly.

We are given: P = ₹ 4,096, R = $$12\frac { 1 }{ 2 }$$ % pa, n = 18 months=$$\frac{18}{12}$$years=$$\frac{18}{12} \times 2=3$$ half years.

R=$$12\frac{1}2$$% =$$\frac{25}2\times \frac{1}2=\frac{25}4$$% half yearly

Amount=$$P(1+\frac{R}{100})^n$$

=$$4,096(1+\frac{25}{4\times 100})^3$$

=$$4,096(\frac{17}{16})^3$$

=$$4,096\times(\frac{17}{16}\times \frac{17}{16}\times \frac{17}{16})$$

=$$₹ \; 4,913$$

Thus, the required amount =₹ 4913