Question

Find the principal if it amounted to rupees 16335 compounded annually at the rate of 10% p.a. in 2 years.

Answer 1

A = 16335, r = 10%, t = 2 yrs

A = P(1 + r/100)^n

16335 = P(1 + 10/100)^2

16335 = P(11/10)^2

16335 = P(121/100)

or P = 16335 x 100 /121

P = Rs 13500