96.0k views
3 votes
A sum of money deposited at the rate of 4 1/2% p.a. for 48 month yields Rs. 80,000, calculate the deposited amount.​

User Punnie
by
8.1k points

1 Answer

4 votes

Answer:

Explanation:

To solve this problem, we can use the formula for calculating compound interest:

A = P * (1 + r/n)^(n*t)

where:

A = the final amount

P = the principal (initial amount of money)

r = the annual interest rate (as a decimal)

n = the number of times interest is compounded per year

t = the time (in years)

In this problem, we know that the interest rate is 4.5% per year, or 0.045 as a decimal. The money is deposited for 48 months, or 4 years.

Let's assume that the principal deposited is P. Then we can use the formula to calculate the final amount:

A = P * (1 + r/n)^(nt)

80,000 = P * (1 + 0.045/12)^(124)

Simplifying the equation, we get:

80,000 = P * (1.00375)^48

80,000 = P * 1.21169

Dividing both sides by 1.21169, we get:

P = 80,000 / 1.21169

P = 66,000

Therefore, the initial amount deposited by the person was Rs. 66,000.

User Pakpe
by
8.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories