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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
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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
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