Question

:) A principle amounts to Rs. 13,924 in 2 years by compound interest at
(ve
18 p.c.p.a. Find the principle amount​

Answer 1

Answer:

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)^nA=P(

1+

100

r

)

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