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In what time will Rs. 3300 becomes Rs. 3399 at 6% per annum interest compounded half-yearly?
Answer & Solution
Correct Answer:
Option
A
$$\eqalign{
& P = Rs.\,3300 \cr
& A = Rs.\,3399 \cr
& R = 6\% \,{\text{per}}\,{\text{annum}} \cr
& {\text{Let}}\,{\text{the}}\,{\text{time}}\,{\text{be}}\,{\text{n}}\,{\text{years}}{\text{.}} \cr
& {\text{Compound}}\,{\text{interest}}\,{\text{is}}\,{\text{taken}}\,{\text{half - yearly}}. \cr
& A = P \times {\left[ {1 + \left( {\frac{R}{2} \times 100} \right)} \right]^{2n}} \cr
& 3399 = 3300{\left( {1 + \frac{3}{{100}}} \right)^{2n}} \cr
& {\left( {1.03} \right)^{2n}} = \frac{{3399}}{{3300}} \cr
& {\left( {1.03} \right)^{2n}} = {\left( {1.03} \right)^1} \cr
& Thus,\,2n = 1\,year \cr
& n = \frac{1}{2}{\text{year}} = 6\,{\text{months}} \cr} $$
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Login1%=33, 6%=198, half yearly means 6months so 3%=99
CI=for six month is 99
WkT A=P+CI=3300+99=3399
Therefore Time=6months