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

Given:

Amount (A) = Rs. 26010

Time (t) = 6 months = 0.5 years

Rate (R) = 8% per annum, compounded quarterly

Number of times interest is compounded per year (n) = 4

Formula Used:

A = P (1 + r/n)^(nt)

where A → Amount, P → Principal, r → Rate of interest, n → Number of times interest is compounded per year, t → Time (in years)

Calculations

According to the question:

26010 = P (1 + 0.08/4)^{(4 × 0.5)}

26010 = P (1 + 0.02)²

26010 = P × (1.02)²

26010 = P × 1.0404

P = 26010 / 1.0404

P = 25000

∴ The sum of money which will amount to Rs. 26010 in 6 months at the rate of 8% per annum when interest is compounded quarterly is Rs. 25000