Question

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

Answer 1

Answer:

Given, amount, A = ₹ 13924

time period , n = 2

interest rate , r = 18 % per annum

Let principal is P

use formula,

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

.

Amount

$=P(1+ \frac{r}{100} ) {}^{T} </p><p>$

where, T is number of years and R is the rate

$13924=P(1+ \frac{18}{100}) {}^{2}$

$⇒P=\frac{13924}{ (\frac{118}{100} ){}^{2} }$

$= 10000$