What will be the Sum? If

The certain sum will amount to ₹ 12,100 in 2 years at 10% per annum of compound interest, interest being compounded annually. The sum is:

  1. ₹ 10,000
  2. ₹ 8,000
  3. ₹ 6,000
  4. ₹ 12,000
Monis Rasool Professor Asked on 30th August 2015 in Maths.
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  • 1 Answer(s)

    Answer : (1) Rs. 10, 000
    Explanation:-
    Given-
    Amount = Rs. 12,100, Time =  2 years, Rate = 10 %, Principal = ?
    Formula-
    Compound Interest = P [(1 + R/100)t – 1]
    Where, P = principal, R = rate, t = time.

    Then, 12,100 = P (1 + 10/100)2
    12,100 = P (11/10)2
    12,100 = P x 11 x 11/10 x 10
    P = 12,100 x 10 x 10/11 x 11
    P = 10,000
    Then, the principal is Rs. 10,000.

    Anurag Mishra Professor Answered on 31st August 2015.
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