In how many years will ₹800 amount to ₹926.10 at 10% per annum, compounded halfyearly?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 1.5
Principal = Rs. 800
Rate = 10%
Amount = 926.10
A = P (1 + r/100)t
If interest compounded semi-annually -
Rate = r/2 = 10/2 = 5%
Time = 2t
ATQ -
926.1 = 800(1 + 5/100)2t
(1 + 1/20)2t = 926.1/800
(21/20)2t = 9261/8000
(21/20)2t = (21/20)3
Comparing on power -
2t = 3
t = 3/2 = 1.5 years