SOLUTION: how much principle become Rs 46500 amount in 2.5 years @ 6% per annum Note-In very long process

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Question 1130967: how much principle become Rs 46500 amount in 2.5 years @ 6% per annum
Note-In very long process
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
46500 is the present value.
the formula to use with compound interest is f = p * (1 + r) ^ n

f is the future value.
p is the present value.
r is the inteest rate per time period (years in this case).
n is the number of time periods.

you have:

present value = 46500.
future value = what you want to find.
r = .06 per time period (use the rate, not the percent).
n = 2.5 time periods.
each time period is 1 year.

formula becomes:

f = 46500 * (1 + .06) ^ 2.5

solve for f to get f = 53791.99062.