Question

after 2 years, the rate of 4.8%per annum compounded annually, the amount is ₹125000. Find the initial amount. ​

Answer 1

Explanation:

As given in question

Rate ;R = 4.8%

Time; t = 2 years

Amount = Rs. 125000

We have to find the initial amount i.e. Principal; P

As the interest is compounded annually

A= P(1+\dfrac{R}{100} )^t\\\\\Rightarrow 125000= P(1+\dfrac{4.8}{100} )^2\\\\\Rightarrow 125000 = P(\dfrac{1048}{1000} )^2\\\\\Rightarrow P = \dfrac{125000\times 1000\times 1000}{1048\times 1048} \\\\\Rightarrow P= Rs113811.84}