Q:
Find the principal if the interest compounded at the rate of 10% per annum for two years is Rs. 420 ?
Answer & Explanation
Answer: A) Rs. 2000
Explanation: Given,
Compound rate, R = 10% per annum
Time = 2 years
C.I = Rs. 420
Let P be the required principal.
A = (P+C.I)
Amount, A =
(P+C.I) =
(P+420) = P[11/10][11/10]
P-1.21P = -420
0.21P = 420
Hence, P = 420/0.21 = Rs. 2000
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