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
Explanation:
Rate of interest is 10% per annum. Hence, interest for half a year is 5%.
The Principal, P is invested for 1.5 years or 3 terms of half years.
Therefore, P (1 + 5%)3 = 18522.
⇒ P × 1.053 = 18522
⇒ P × 1051003= 18522
⇒ P × 21203 = 2 × 213
⇒ P = 2 × 203 = 16000.
Hence, 16000.
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