Find the sum of money which will amount to Rs.26010 in 6 months at the rate of 8% per annum when the Interest is compounded quarterly.

Given:

Amount $A = Rs. 26010$

Time $T = 6$ months $= \frac{1}{2}$ year.

Rate of interest $R = 8$% per annum

Rate of interest per quarter $= 2$%

To do :

We have to find the principal.

Solution :

Interest is compounded quarterly.

This implies,

$n = 2$.

Let the principal be P.

$A = P(1 + \frac{R}{100})^n$

$26010 = P(1+\frac {2}{100})^2$

$26010 = P(\frac{102}{100})^2$ 

$P = \frac{(50\times50)}{(51\times51)} \times 26010$

$P = 25000$

The sum of money is Rs. 25,000.

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Updated on: 10-Oct-2022

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