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      Question

      A sum becomes Rs. 9680 in 2 years at compound interest

      compounded annually at 10% per annum. Find the principal.
      A 12000 Correct Answer Incorrect Answer
      B 15000 Correct Answer Incorrect Answer
      C 8000 Correct Answer Incorrect Answer
      D 5000 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      ATQ, A = P(1 + R/100)^2 9680 = P(1.1)^2 9680 = P x 1.21 P = 9680/1.21 = 8000

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