find the principle that will yield a compound interest of rs-1632 in 2 years at 4% rate of interest per annum
the principal (not principle) can be found by solving
P*1.04^2 - P = 1632
P(1.04^2-1) = 1632
...
To find the principal that will yield a compound interest of Rs-1632 in 2 years at a rate of interest of 4% per annum, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the principal
r is the rate of interest (as a decimal)
n is the number of times the interest is compounded per year
t is the number of years
In this case, we know:
A = Rs-1632 (the final amount)
r = 4% = 0.04 (as a decimal)
n = 1 (compounded annually)
t = 2 (2 years)
Plugging these values into the formula, we have:
Rs-1632 = P(1 + 0.04/1)^(1*2)
Rs-1632 = P(1 + 0.04)^2
Rs-1632 = P(1.04)^2
To isolate the principal (P), we need to solve for P. Rearranging the equation:
P = Rs-1632 / (1.04)^2
P = Rs-1632 / 1.0816
Using a calculator, we can calculate:
P ≈ Rs-1508.63
Therefore, the principal that will yield a compound interest of Rs-1632 in 2 years at a 4% rate of interest per annum is approximately Rs-1508.63.
To find the principal that will yield a compound interest of Rs 1632 in 2 years at a 4% rate of interest per annum, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (Rs 1632)
P = the principal amount we want to find
r = the annual interest rate (4% or 0.04 in decimal form)
n = the number of times interest is compounded per year (assuming it is compounded annually, n would be 1)
t = the time period in years (2 years)
Now, plug in the values we know into the formula and solve for P:
1632 = P(1 + 0.04/1)^(1*2)
Simplifying the expression:
1632 = P(1 + 0.04)^2
1632 = P(1.04)^2
1632 = P(1.0816)
Divide both sides of the equation by 1.0816 to isolate P:
P = 1632 / 1.0816
P ≈ Rs 1509.86
Therefore, the principal that will yield a compound interest of Rs 1632 in 2 years at a 4% rate of interest per annum is approximately Rs 1509.86.