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A sum put out at 4% compound interest pa...

A sum put out at 4% compound interest payable half yearly amounts to Rs. 6632.55 in `1(1)/(2)` years. The sum is

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To find the principal amount when a sum is put out at 4% compound interest payable half-yearly and amounts to Rs. 6632.55 in 1.5 years, we can follow these steps: ### Step 1: Understand the parameters - **Rate of interest (R)**: 4% per annum - **Time (T)**: 1.5 years - **Amount (A)**: Rs. 6632.55 ### Step 2: Convert the rate and time for half-yearly compounding Since the interest is compounded half-yearly: - The half-yearly rate (r) = 4% / 2 = 2% = 0.02 (in decimal) - The total number of half-year periods (n) = 1.5 years × 2 = 3 half-years ### Step 3: Use the compound interest formula The formula for compound interest is: \[ A = P \left(1 + r\right)^n \] Where: - \( A \) = Amount after time \( T \) - \( P \) = Principal amount (what we want to find) - \( r \) = Rate of interest per period - \( n \) = Number of periods ### Step 4: Substitute the known values into the formula We need to rearrange the formula to solve for \( P \): \[ P = \frac{A}{\left(1 + r\right)^n} \] Substituting the values: \[ P = \frac{6632.55}{\left(1 + 0.02\right)^3} \] \[ P = \frac{6632.55}{(1.02)^3} \] ### Step 5: Calculate \( (1.02)^3 \) Calculating \( (1.02)^3 \): \[ (1.02)^3 = 1.061208 \] ### Step 6: Calculate the principal amount \( P \) Now substituting back: \[ P = \frac{6632.55}{1.061208} \] \[ P \approx 6249.99 \] Thus, the principal amount is approximately Rs. 6250. ### Summary of the Solution The principal amount that was put out at compound interest is approximately Rs. 6250. ---
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