A sum become ₹12100 in 2 years at 10% Compound Interest annually. Find the principal.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹10000.
Amount (A) = 12100
Rate (r) = 10%
Time (t) = 2 years
A = P(1 + )2
⇒ 12100 = P(1.1)2
⇒ 12100 = P × 1.21
⇒ P = = ₹10000