Question

Find the principal that will amount to Rs.2196 in 4 years at 11/2% per annum

Answer 1

The principle will be Rs 1772.65

Step-by-step explanation:

Amount = Rs 2196/-

Time = 4 years

Rate, r = 0.055 Per annum

Let principle be P

$A=P(1+r)^t$

$2196=P(1+0.055)^4$

$P=\dfrac{2196}{(1+0.055)^4}$

$P=1772.65$

#BAL

Answer 2

Answer:

The principal that will amount to Rs.2196 in 4 years at 11/2% per annum is 2069.043

Step-by-step explanation:

The compound interest accumulation formula is given by:

A = P(1 + i)ⁿ

Whereby:

A = Accumulated

P = The principal amount

i = interest rate

n = the duration of accumulation

In this case, we have:

A = Rs 2196

n = 4 years

i = 1 1/2%

Substituting the values we have:

2196 = P(1 + 1.5)⁴

2196 = P(1.015)⁴

2196 = 1.06136P

P = 2069.043

The principal is 2069.043