Question
A sum of money is invested at a rate of 12% per annum
compound interest for 2 years. If the total amount after 2 years is ₹11,520, what is the principal amount?Solution
Let the principal amount be P. The formula for compound interest is: A = P(1 + r/100)^t Where A is the amount, r is the rate, and t is the time period. Given: Amount A = 11,520 Rate r = 12% Time t = 2 years Substitute the values into the compound interest formula: 11,520 = P(1 + 12/100)^2 11,520 = P × (1.12)^2 11,520 = P × 1.2544 P = 11,520 / 1.2544 = 9,183.67 Correct Option: d
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