what is the principal amount which earns₹132 as compound interest for second year with 10% interest per annum?
Answers
Answer:
The principal is Rs.1200
Step-by-step explanation:
P = principal
R = rate of interest per cent per year
T = number of years
A = final amount
A = P*(1 + R/100)^T
Let A1 denote the amount at the end of the first year.
=> A1 = P*(1 + 10/100)^1
= P(1 + 0.1)
= 1.1*P
Let A2 denote the amount at the end of the second year
=> A2 = P*(1 + 10/100)^2
= P*(1 + 0.1)^2
= P*(1.1)^2
= 1.21*P
Clearly, the compound interest (CI) earned DURING the second year will the difference between A2 and A1
CI for second year = A2 - A1
=> 132 = A2 - A1
=> 1.21*P - 1.1*P = 132
=> 0.11*P = 132
=> P = 132/0.11
= 1200
The required principal amount is Rs.1,200
Answer:
1200
Step-by-step explanation:
1200+10% = 1200+120=1320 ( first year)
10% of 1320 is 132 which is given in the question
So, 1200