Question

18.
A sum amounts to 4.410 after two years at 5% compound interest per annum. What
is the principal?
(1) 3,000
(2)4100
(3)4000
(4)4200​

Answer 1

Answer:

Rs. 4,000

SOLUTION : -

Let the principal is P

Then Amount

A = P ( 1 + r % )^t

=> 4,410 = P( 1 + 5% )^2

=> 4,410 = P ( 1 + 0.05 )^2

=> 4,410= P ( 1.05 )^2

=> 4,410 = P × 1.1025

=> P = 4,410 / 1.1025

=> P = 4,410 / 1.1025

=> P = 4,000

Therefore the answer is (3) part.