Question

Find principal that yield a compound interest of rs.1632 in 2years

Answer 1

Let the principal at end of first year be x then = PTR / 100 =  x × 10×1 / 100 = 132 or x = 1320. Now let original principal P . amount after 1 year = P +( P × 10 ×1) / 100 = 11P/10 . Hence 11P/10 = 1320 ∴ P = 1200 .