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Find the Amount that David Would Receive If He Invests Rs 8192 for 18 Months at 12 1 2 per Annum, the Interest Being Compounded Half-yearly

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Question

Find the amount that David would receive if he invests Rs 8192 for 18 months at \[12\frac{1}{2} \%\] per annum, the interest being compounded half-yearly.

Numerical
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Solution

Given: 
P = Rs 8, 192
R = 12 . 5 % p . a . 
n = 1 . 5 years
When the interest is compounded half - yearly, we have: 
\[A = P \left( 1 + \frac{R}{200} \right)^{2n} \]
 = Rs \[8, 192 \left( 1 + \frac{12 . 5}{200} \right)^3 \]
 = Rs \[ 8, 192 \left( 1 . 0625 \right)^3 \]
 = Rs 9, 826
Thus, the required amount is Rs 9, 826.

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