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
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- 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
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