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If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none?
Most Upvoted Answer
If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half...
Solution:
Given that,
A = ` 1,000
n = 2 years
R = 6% p.a compound interest payable half-yearly
We can use the formula for compound interest to find the principal (P).
Formula:
A = P(1 + R/100)^n
Where,
A = Amount
P = Principal
R = Rate of interest
n = Time period
Step 1: Calculate the half-yearly rate of interest
r = R/2
= 6/2
= 3%
Step 2: Calculate the number of half-yearly periods
n = 2 x 2
= 4
Step 3: Calculate the amount
A = ` 1,000
= P(1 + r/100)^n
= P(1 + 3/100)^4
= P(1.03)^4
= P(1.1255)
= 1,125.50
Step 4: Calculate the principal
P = A/(1 + r/100)^n
= 1,000/(1 + 3/100)^4
= 1,000/(1.03)^4
= 1,000/1.1255
= ` 888.62 (approx)
Therefore, the principal (P) is ` 888.62 (option a).
Answer: (a) ` 888.62
Given that,
A = ` 1,000
n = 2 years
R = 6% p.a compound interest payable half-yearly
We can use the formula for compound interest to find the principal (P).
Formula:
A = P(1 + R/100)^n
Where,
A = Amount
P = Principal
R = Rate of interest
n = Time period
Step 1: Calculate the half-yearly rate of interest
r = R/2
= 6/2
= 3%
Step 2: Calculate the number of half-yearly periods
n = 2 x 2
= 4
Step 3: Calculate the amount
A = ` 1,000
= P(1 + r/100)^n
= P(1 + 3/100)^4
= P(1.03)^4
= P(1.1255)
= 1,125.50
Step 4: Calculate the principal
P = A/(1 + r/100)^n
= 1,000/(1 + 3/100)^4
= 1,000/(1.03)^4
= 1,000/1.1255
= ` 888.62 (approx)
Therefore, the principal (P) is ` 888.62 (option a).
Answer: (a) ` 888.62
Community Answer
If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half...
Option A) 888.62 is the correct answer
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If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none?
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If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none?.
If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If A = ` 1,000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is (a) ` 888.62 (b) ` 885 (c) 800 (d) none?.
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