Question

A person invested a certain amount of money at 10% annual interest, compounded half-yearly. After one and a half years, the interest and principal together became Rs 18522. The amount, in rupees, that the person had invested is [This Question was asked as TITA]

• A. 15000
• B. 17000
• C. 16000
• D. 18000

Answer 1

Answer: (C)

16000

Answer 2

10% is the interest rate.
R=5% and n=3, as it is compounded every six months.
Let the sum be $P$.

Given, $P×\bigg(1+\frac{10}{200}\bigg)^3 = 18522$

$⇒ P = 18522×\bigg(\frac{20}{21}\bigg)^3 = 16000$