Practicing Success
Find the principal amount if the interest compounded annually at the rate of 10% for two years is ₹4,200. |
₹17,500 ₹20,000 ₹24,000 ₹16,000 |
₹20,000 |
Compound interest = \(\frac{15}{3}\)% = 5% From the formula for compound interest, we know, C.I = P(1+$\frac{R}{100})^t$– P 4200 = P [ 1 + \(\frac{10}{100}\) ]² - P 4200 = P [ \(\frac{11}{10}\) × \(\frac{11}{10}\) - 1 ] 4200 = P[ \(\frac{121}{100}\) - 1 ] 4200 = P [ \(\frac{21}{100}\) ] P = 20000 |