Question

The principle that will yield a the compound interest of 1632 in 2 years at 4% rate of interest per annum is

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