Question

*What will be the principal which amounts 160 more than the first year at the rate of 8 p.c.p.a. with the compound interest?*

1️⃣ ₹20000
2️⃣ ₹25000
3️⃣ ₹16000
4️⃣ ₹80000​

Answer 1

Given :- What will be the principal which amounts 160 more than the first year at the rate of 8 p.c.p.a. with the compound interest?*

1️⃣ ₹20000

2️⃣ ₹25000

3️⃣ ₹16000

4️⃣ ₹80000

Answer :-

we know that,

In first year compound interest is equal to simple interest .

so, we can say that, amount more than Rs.160 is simple interest only .

Let us assume that, Principal is Rs.P .

then,

→ P = SI * 100 / R * T

→ P = (160 * 100) / (8 * 1)

→ P = Rs.20000 (Option 1) (Ans.)