Question

find the principal which amounts to rupees 17640 at the rate of 5p.c.p.a compound annually for two years?​

Answer 1

$\small{\textsf{\textbf{\underline{\underline{The Principal is Rs 16000. \::}}}}}$

Step-by-step explanation:

Given that:

• Amount = Rs 17640
• Rate of interest = 5% p.a.
• Time = 2 years

To Find:

• Principal

Formula used:

• In compound interest.
• A = P(1 + R/100)ᵀ

Where,

• A = Amount
• P = Principal
• R = Rate of interest
• T = Time

Finding the principal:

Substituting the given values in formula.

⟶ 17640 = P(1 + 5/100)²

⟶ 17640 = P(1 + 0.05)²

⟶ 17640 = P(1.05)²

⟶ 17640 = P × 1.05 × 1.05

⟶ 17640 = 1.1025P

⟶ P = 17640/1.1025

⟶ P = 16000

${\textsf{\textbf{\underline{\underline{∴ Principal = Rs 16000\::}}}}}$