Question

What principal will amount to rupees 2640 in 2years at 10%p.a. interest

Answer 1

let ' P ' be the required principal .

Given , Amount (A ) = Rs 2640

Time ( T )= 2 yr , Rate (R ) = 10 % p.a

since , we know that

Amount = P ( 1 + R / 100 )^T

2640 = P ( 1 + 10 / 100 )^2

2640 = P ( 110 / 100 )^2

2640 = P ( 110 / 100 ) ( 110 / 100 )

2640 = 121 P / 100

2640 × 100 = 121 P

121 P = 264000

P = Rs 2181.81

therefore,

required principal = Rs 2181.81
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Your Answer: P = Rs 2181.81
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extra :
•simple interest = P × R × T / 100

•Amount = principal + interest

•=>Interest = amount - principal

•=> Principal = amount - interest

•C.I = amount - principal _______________________________