Question

find the principal that will a compound interest of 1632 rs in two yrs at 4% interest per annam

Answer 1

Compound interest   C = 1632 Rs
Rate                          R = 4 %
Year                           n = 2

Principal = ?

Thus 
C = P [1 + R ]^n
1632 = P [ 1+0.04 ] ^2
      P = 1632/1.08
      P = 1511.11 Rs
Thus the principal amount is 1511.11 Rs

Answer 2

Solution :-

Compound Interest = Amount - Principal

C. I. = P(1 + R/100)ⁿ - P 

Given -

Rate of Interest = 4 %, Time = 2 years and Compound Interest = Rs. 1632

⇒ 1632 = P(1 + 4/100)² - P

⇒ 1632 = (P × 104/100 × 104/100) - P

⇒ 1632 = (P × 1.0816) - P

⇒ 1632 = 1.0816P - P 

⇒ 0.0816P = 1632

⇒ P = 1632/0.0816

⇒ P = Rs. 20000

So, the Principal is Rs. 20000

Answer.