Question

Find the principal if compound interest is charged on the principal at the rate of 16 2 by 3% per annum for 2 years and the sum become 196

Answer 1

Answer:

P x 7/6 x 7/6 = 196 → P = (196 x 6 x 6)/7 x 7 = 144.

This discussion on Find the principal if compound interest is charged on the principal at the rate of 162/3% per annum for two years and the sum becomes Rs. 196.a)Rs. 140b)Rs. 154c)Rs. 150d)Rs. 144Correct answer is option 'D'. Can you explain this answer? is done on EduRev Study Group by Quant Students. The Questions and Answers of Find the principal if compound interest is charged on the principal at the rate of 162/3% per annum for two years and the sum becomes Rs. 196.a)Rs. 140b)Rs. 154c)Rs. 150d)Rs. 144Correct answer is option 'D'. Can you explain this answer? are solved by group of students and teacher of Quant, which is also the largest student community of Quant. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for Quant on EduRev and even discuss your questions like Find the principal if compound interest is charged on the principal at the rate of 162/3% per annum for two years and the sum becomes Rs. 196.a)Rs. 140b)Rs. 154c)Rs. 150d)Rs. 144Correct answer is option

Answer 2

The principal amount is Rs. 542.769.

Given:

Compound interest is charged at the rate of 16(2/3)% per annum for 2 years and the final amount becomes Rs. 196.

To Find:

The principal amount.

Solution:

Compound interest is given by

A = P(1+$R/$$100)^{n}$

A= P+CI

where

A = Final amount

P = Initial principal balance

R = Rate of interest

N = Number of years.

CI at 16(2/3)% = 196

∴A= P+196

From the formula, we have

P+196= P(1+16(2/3)/100)^2

⇒ P+196= P(1+16(2/3)/100)^2 = P(1+50/300)^2

⇒P+196=P(1+1/6)^2

⇒ P+196= 49P/36

⇒36P + 7056= 49P

⇒13P= 7056

⇒P = 542.769

Therefore the principal amount is Rs. 542.769

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