What sum invested for 1 1 2 years compounded half yearly at the rate of 8% will amount to 140608?

Answer

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Hint: We have to find the principal amount for which $4\% $ interest is compounded half-yearly for $1\dfrac{1}{2}$ years which sum to a final amount of $Rs.132651$ . So, using the compound interest formula which is Final Amount = $principal \times {\left( {1 + \dfrac{{rate}}{{100}}} \right)^{time}}$ we will find the principal amount.
Given:
Interest rate = $4\% $ per annum, for compounded half years the interest rate becomes half that is $2\% $
Final amount = $Rs.132651$
Time = $1\dfrac{1}{2}$ = $1.5$ years, for compounded half years the time becomes $3$ half years.

Complete step-by-step solution:
The formula for compound interest is
Total Amount = $\text{principal} \times {\left( {1 + \dfrac{{rate}}{{100}}} \right)^{time}}$.
Substituting all the values given in the question, the formula becomes,
$132651$ = $\text{principal} \times {\left( {1 + \dfrac{2}{{100}}} \right)^3}$
Solving the rate of interest part,
Cross multiplying and making the denominator equal,
$132651$ = $\text{principal} \times {\left( {\dfrac{{100 + 2}}{{100}}} \right)^3}$
$\Rightarrow 132651$ = $\text{principal} \times {\left( {\dfrac{{102}}{{100}}} \right)^3}$
$\Rightarrow 132651$ = $\text{principal} \times {\left( {1.02} \right)^3}$
$\Rightarrow 132651$ = $\text{principal} \times 1.06120$
Dividing the final amount $132651$ by $1.06120$,
$principal = \dfrac{{132651}}{{1.06120}}$
Finally, we get the principal amount as,
$principal = 125000$
The principal amount is $Rs.125000$
Therefore, $Rs.125000$ is compounded half-yearly for $1.5$ years at a rate of interest of $4\% $ p.a. to get the final amount as $Rs.132651$.
We can cross-check the principal amount by using the same compound interest formula where we substitute principal amount as $Rs.125000$ rate of interest as $2\% $ half-yearly and time as $3$ half years,
Final Amount = $\text{principal} \times {\left( {1 + \dfrac{{rate}}{{100}}} \right)^{time}}$
Final Amount = $125000 \times {\left( {1 + \dfrac{2}{{100}}} \right)^3}$
Final Amount = $125000 \times {\left( {1 + 0.02} \right)^3}$
Final Amount = $125000 \times {\left( {1.02} \right)^3}$
Final Amount = $125000 \times 1.06120$
Final Amount = $132650 \cong 132651$
Therefore, $Rs.125000$ is the correct principal amount.

Note: Compound interest is the interest calculated on the predominant and the interest accrued over the preceding period. It is distinct from easy interest, where interest isn't introduced to the principal while calculating the interest at some point of the following duration. Compound interest unearths its usage in the maximum of the transactions in the banking and finance sectors and different regions.

What sum invested for 1½ years, compounded half yearly at the rate of 4% p.a., amounts to Rs. 1,32,651?

1. Rs. 1,00,000
2. Rs. 1,24,000
3. Rs. 1,34,000
4. Rs. 1,25,000

Answer (Detailed Solution Below)

Option 4 : Rs. 1,25,000

Free

History of Indian Constitution

15 Questions 15 Marks 9 Mins

Given

Amounts = Rs. 1,32,651

Time = 3/2 years 

Rate = 4%

Compounded half yearly 

Concept 

A = P × (1 + r/100)t 

When compounded half yearly 

Rate become half and Time become double (As in 1 year 12 months = 6 months + 6 months)

Calculation

Time = 3 years 

Rate = 2%

⇒ 132651 = P × (1 + (2/100))3

⇒ 132651 = P × (1 + (1/50))3

⇒ 132651 = P × (51/50)3

⇒ P = (132651 × 50 × 50 × 50)/(51 × 51 × 51)   

Note:-  513 = 132651

⇒ P = Rs. 125000

∴ Sum = Rs. 125000

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I'd like to say hello to everyone. We are going to solve a question that has a principal of $28,000. Nine years is what we are giving time for. We argue and read That is it R is equal to eight poison. This amount is compounded Sammy and Willie. After nine news we need to find the total amount. For semi annually compounded, we double the time that is given to us. The dash is equal to nine and two news. We have a rate of 8% divided by two. Here we have 8% divided by two. Is he going to p. with one plus R Dash and 100 raised to the power T. Dash? After putting the values we have 28,000 with one plus four divided by 100 raised to the power 18. From here we have 28,000 Multiplied with 1.04 raised to the power eating. This is 28,000 Multiplied with 2.0.25. We have 2.0 258 and it's equal to 25662 2.4. The amount is equal to the amount. Which is the question's final answer. Thank you for your kind words.

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