Question

Find the principal if the interest compounded at the rate of 10% per annum for two years is Rs. 420.
A.Rs. 1000
B.Rs. 2200
C.Rs. 2000
D.Rs. 1100

Answer 1

Heya!

Here is your answer =>

Answer: option C

Given,

Compound rate, R = 10% per annum

Time = 2 years

CI = Rs. 420

Let P be the required principal.

A = (P+CI)

Amount, A = {P*[1+ (R/100)]n }

(P+CI) = {P*[1+10/100]2}

(P+420) = P*[11/10]2

P-1.21P = -420

0.21P = 420

Hence, P = 420/0.21 = Rs. 2000.

Hope this helps you