Question

A principal amounts to ₹13924 in 2 years by compound interest at 18 p.c.p.a. Find the principal.

Answer 1

Given, amount, A = ₹ 13924
time period , n = 2
interest rate , r = 18 % per annum
Let principal is P

use formula, $A=P\left(\begin{array}{c}1+\frac{r}{100}\end{array}\right)^n$
so, 13924 = P(1 + 18/100)²
=> 13924 = P(118/100)²
=> P = 13924 × 10000/118 × 118
P = 10,000

hence, principal is ₹ 10, 000

Answer 2

Answer:

A principal amounts to ₹13924 in 2 years by compound interest at 18 p.c.p.a. Find the principal.

Here, P = Principal

A = ₹ 13924

R = 18 %

N = 2 years

⇒ A = P × (1+R100)N

⇒ 13924 = P × (1+18/100)²

⇒ 13924 = P × (1+9/50)²

⇒ 13924 = P × (59/50)²

⇒ P = 13924 × 50 × 50/59×59

⇒ P=10000

Hence, the principal is ₹ 10000.