find the principal that yield yield a compound interest of rupees 1632 in 2 years at 4% is rate of interest per annum
dear student,
we know that
amount = principal + compound interest
compound interest = amount - principal
compound interest = 1632
Amount = P ( 1 + )n , where P = principal , time = n , r = rate of interest
1632 = P(1+ )n - P
1632 = P( 1 + )2 - P
1632 = P( )2- P
1632 = P[ - 1]
1632 = P[ ]
1632 = P[]
P =
P = 20000
Regards
we know that
amount = principal + compound interest
compound interest = amount - principal
compound interest = 1632
Amount = P ( 1 + )n , where P = principal , time = n , r = rate of interest
1632 = P(1+ )n - P
1632 = P( 1 + )2 - P
1632 = P( )2- P
1632 = P[ - 1]
1632 = P[ ]
1632 = P[]
P =
P = 20000
Regards