document.write( "Question 1130967: how much principle become Rs 46500 amount in 2.5 years @ 6% per annum
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Algebra.Com's Answer #749356 by Theo(13342) $\"\"$ $\"About$

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46500 is the present value.
\n" ); document.write( "the formula to use with compound interest is f = p * (1 + r) ^ n\r
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\n" ); document.write( "\n" ); document.write( "f is the future value.
\n" ); document.write( "p is the present value.
\n" ); document.write( "r is the inteest rate per time period (years in this case).
\n" ); document.write( "n is the number of time periods.\r
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\n" ); document.write( "\n" ); document.write( "you have:\r
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\n" ); document.write( "\n" ); document.write( "present value = 46500.
\n" ); document.write( "future value = what you want to find.
\n" ); document.write( "r = .06 per time period (use the rate, not the percent).
\n" ); document.write( "n = 2.5 time periods.
\n" ); document.write( "each time period is 1 year.\r
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\n" ); document.write( "\n" ); document.write( "formula becomes:\r
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\n" ); document.write( "\n" ); document.write( "f = 46500 * (1 + .06) ^ 2.5\r
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\n" ); document.write( "\n" ); document.write( "solve for f to get f = 53791.99062.\r
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