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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