Question

what is the principal if it amounts to Rs 3528 at 5 p.c.p.a,compound interest for 2 years?

Answer 1

3528=P(1+5/100)²
3528= P(11025/10000)
P=3528/1.1025
P=3200

Answer 2

Thus, Principal is 3200

Step-by-step explanation:

Given,

Amount, A = 3528

Rate, r = 5 %

Time, t = 2 years

Principal, p = ?

We know that,

Amount,  $A = p\times \left( 1 + \frac{r}{100} \right)^t$

$3528 = p\times \left( 1 + \frac{5}{100} \right)^2$

$3528 = p\times \left( 1 + \frac{1}{20} \right)^2$

$3528 = p\times \left( \frac{21}{20} \right)^2$

$3528 = p\times 1.1025$

p = 3200

Thus, Principal is 3200