find the principal which will amount to 4500 in 2 years at rate of 4% per annum compounded annually
Answers
AnswEr :
• Amount of the Compound Interest :
⠀
∴ Hence, Principal will be Rs. 4160.50
• V E R I F I C A T I O N :
◦ Interest for First Year :
◦ Interest for Second Year :
↠ Amount = Principal + (1st Yr + 2nd Yr) Int.
↠ 4500 = 4160.50 + 166.42 + 339.49
↠ Rs. 4500 = Rs. 4500 ⠀⠀Hence, Verified!
#answerwithquality #BAL
❏ Used ForMuLaS:-
➔ For Compound interest
➔ For Simple interest
Where ➔ • = Total amount after
compound interest .
• = Total amount after
Simple interest .
• P= principal amount.
• t= time.
• r= rate of interest.
• n= No. of interest cycle per year .
Ex:-
➝n=1 (when compounded annually)
➝n=2 (when compounded half yearly)
➝n=4 (when compounded quarterly)
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❏ Question:-
Q) Find the principal which will amount to 4500 in 2 years at rate of 4% per annum compounded annually.
❏ Solution:-
❚❚❚ Given:
• Time(t)= 2 years
• Interest rate(r)= 4%
• = 4500 Rs
• n=1 [∵ compounded only]
❚❚❚To Find:
• Principal= P (let)
➾ Now , using the above Formula of compound interest,
∴ The principal was =4160.50 Rs
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#answerwithquality & #BAL