Question

what is the principal which will amount to Rs. 11,236 in 2 years at 6%

compound interest compounded annually.

a) 70,000.

b) 30,000.

c) 10,000.

d) 90,000.​

Answer 1

Answer:

c

Step-by-step explanation:

The interest is 6% per year

let's say P is the principal amount

In one year the total amount will be P+6%P

= 106P/100 = X (let's say)

And now for the second year the total amount will be

X+6%X

=106P/100 + 6×106P/10000

=11236P/10000

And now that is equal to 11236

i.e., 11236P/10000 = 11236

=> P = 10000

therefore the principal amount is 10000 (c)