Correct
Not quite — the correct answer is highlighted
Show answer & explanationHide answer
Answer: (D) 9,466.55
Explanation
The compound interest formula for compounding half-yearly is A = P(1 + R/200)²ᵀ, where A is the amount, P is the principal sum, R is the annual rate of interest, and T is the time in years.
Here, the given values are: Amount A = 9,826 Annual Rate R = 2½% = 2.5% Time T = 18 months = 1.5 years Number of half-yearly periods n = 2T = 3
The half-yearly interest rate is R/2 = 1.25% per half-year, which is equivalent to 1.25/100 = 1/80 in fraction form.
Substituting these values into the formula: 9,826 = P(1 + 1/80)³ 9,826 = P(81/80)³ P = 9,826 × (80/81)³ P = 9,826 × 512,000 / 531,441 P = 5,030,912,000 / 531,441 P ≈ 9,466.55