Question

1. If an amount is kept in bank and increases by 10% of initial amount every year. After 6 years if the initial
amount is added to the final amount from bank. The total is 2,60,000/- Find the Principle amount?
A) 1,00,000
B) 1,60,000
C) 1,50,000
D) 2,00,000
answer with explanation please
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Answer 1

Answer:

Principal amount = 1,50,000/-[ option c is the correct answer]

Step-by-step explanation:

In the context of the question

we know that the final amount from bank after 6 years =2,60,000/-

with the interest rate per annum = 10%

we have to find out the principle amount = ?

 we know that;

total amount = principle amount ( 1+ interest rate )ⁿ

where;

n = number of years

lets place the given amount in the equation

2,60,000 = P ( 1+ 10%)⁶

2,60,000 = P (1.1)⁶

2,60,000 =  1.771561 P

P = 2,60,000 / 1.771561

P = 1,46,763.222/-

Therefore;

Principal amount = 1,46,763.222/-

1,50,000 ( appx) [ option c is the correct answer]