Question
The compound interest (compounded
annually) on a certain amount for 2 years is Rs. 2415. If the annual rate of interest is 10%, what is the principal amount?Solution
ATQ,
Let the sum be Rs. 'a'. Compound interest = a × [1+(10/100)2-1] = 2415 Or, a ×(121/100 - 1) = 2415 Or, 'a' = 2415 × (100/21) So, 'a' = 11500 So, required sum = Rs.11500
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