If the interest is payable annually, then the principal amount on which the compound interest for 2 years at 5% per annum is ₹369, is given by

₹3600

The correct answer is Option (2) → ₹3600

We can solve this using the standard Compound Interest (CI) formula:

$CI = P \left[ \left(1 + \frac{r}{100}\right)^n - 1 \right]$

1. Identify the given values:

• Compound Interest (CI) = ₹369
• Rate (r) = 5%
• Time (n) = 2 years
• Principal (P) = ?

2. Substitute values into the formula:

$369 = P \left[ \left(1 + \frac{5}{100}\right)^2 - 1 \right]$

$369 = P \left[ \left(1 + \frac{1}{20}\right)^2 - 1 \right]$

$369 = P \left[ \left(\frac{21}{20}\right)^2 - 1 \right]$

3. Solve for P:

$369 = P \left[ \frac{441}{400} - 1 \right]$

$369 = P \left[ \frac{441 - 400}{400} \right]$

$369 = P \left[ \frac{41}{400} \right]$

$P = \frac{369 \times 400}{41}$

4. Final Calculation:

Dividing 369 by 41 gives exactly 9 ($41 \times 9 = 369$).

$P = 9 \times 400 = \mathbf{₹3600}$