In what time will Rs.1000 amounts to Rs.1331 at 20% per annum, compounded half yearly ?
Options:
A . 2$1/2$ years
B . 1$1/2$ years
C . 1 year
D . 2 years
Answer: Option B Answer: (b)Using Rule 1 and 2,Let the required time be t years. Interest is compounded half yearly.Time = 2t half years and rate= $20/2$ = 10%1000$(1 + 10/100)^{2t}$ = 1331$(11/10)^{2t} = 1331/1000$$(11/10)^{2t} = (11/10)^3$ ⇒ 2t = 3t = $3/2$ years or 1$1/2$ years
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