Find the rate percent per annum, if Rs.2000 amount to Rs.2315.25 in an year and a half, interest being compounded 6 monthly
Compounded 6 monthly means n= 2 ( because there are 2 halfs in one year)
and 1 and half year means t=1.5
Compound interest = P(1+r/n)nt
2315.25=2000(1+r/2)2*1.5
2315.25/2000=(1+r/2)3
1.157625=(1+r/2)3
1+r/2 =1.05
r/2 = 0.05
r=0.1
Rate of interest = 0.1*100=10%
and 1 and half year means t=1.5
Compound interest = P(1+r/n)nt
2315.25=2000(1+r/2)2*1.5
2315.25/2000=(1+r/2)3
1.157625=(1+r/2)3
1+r/2 =1.05
r/2 = 0.05
r=0.1
Rate of interest = 0.1*100=10%