Question

If the amount after 2 years at the rate of 6 percent per annum compounded annually is rs 12,000 find the principal.

Answer 1

Here,

A = P*( 1+6/100 )² + P
12000 = P [ ( 106/100 )² + 1 ]
P = 12000/ [ ( 106/100 )² + 1 ]
= 5651 approx

Answer 2

Hi ,

Let the principal = P

amount ( A ) = Rs 12000

time ( T ) = 2 years

number of times of interest paid ( n ) = 2

rate of interest ( r ) = 6 %

we know that ,

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

12000 = P ( 1 + 6 / 100 )²

12000 = P ( 100 + 6 )² / ( 100 )²

12000 = P ( 106 / 100 )²

12000 = P ( 53 / 50 )²

12000 × ( 50 / 53 )² = P

( 12000 × 50 × 50 ) / ( 53 × 53 ) = P

10679.96 = P

P ≈ Rs 10679.96

I hope this helps you.

:)