find the principal that yield a compoun interest of Rs.1632 in 2 years at 4% rate of interest per annum.
A = p(1+rt) = 1632(1+.04*2) = ?
1762.56
To find the principal that yields 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 = Total amount after interest
P = Principal (initial amount)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Time in years
In this case, we know:
A = Rs. 1632
r = 4% or 0.04 (in decimal form)
n = 1 (compounded annually)
t = 2 years
Now, let's rearrange the formula to solve for P:
P = A / (1 + r/n)^(nt)
Substituting the known values into the formula, we have:
P = 1632 / (1 + 0.04/1)^(1*2)
= 1632 / (1 + 0.04)^2
= 1632 / (1.04)^2
= 1632 / 1.0816
= 1508.04
Therefore, the principal that yields a compound interest of Rs. 1632 in 2 years at a rate of interest of 4% per annum is approximately Rs. 1508.04.