Question

A certain principal amount is charged at a rate of 10% compound interest for two years and the amount becomes Rs. 605. The principal amount is
(a) Rs. 450
(b) Rs. 500
(c) Rs. 550
(d) Rs. 530

Answer 1

• Amount : p(1+r/100)^n
• 605=p(1+10/100)^2
• 605=p(110/100)^2
• 605=p×11/10×11/10
• 605=1.21p
• p=605/1.21
• p=500
• principal=500