1.

A principal amounts to ₹13924 in 2 years by compound interest at 18 p.c.p.a. Find the principal.

Answer»

Given, amount, A = ₹ 13924
time PERIOD , n = 2
interest RATE , R = 18 % per annum
LET principal is P

use formula, A=P\left(\begin{array}{c}<klux>1</klux>+\frac{r}{100}\end{array}\right)^n
so, 13924 = P(1 + 18/100)²
=> 13924 = P(118/100)²
=> P = 13924 × 10000/118 × 118
P = 10,000

hence, principal is ₹ 10, 000



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