Find the principal if the interest compounded annually at the rate of

1.	Find the principal if the interest compounded annually at the rate of 10% for two years is Rs. 210.
Answer» Given details are, Rate = 10 % per annum Compound Interest (CI) = Rs 210 Time (t) = 2 years By using the formula, Let P be ‘x’ CI = A – P 210 = P (1 + R/100)ⁿ – P = P [(1 + R/100)ⁿ – 1] = x [(1 + 10/100)² – 1] = x [(110/100)² – 1] 210 = x ((1.1)² – 1) x = 210 / ((1.1)² – 1) = 210/0.21 = Rs 1000 ∴ The required sum is Rs 1000.

Find the principal if the interest compounded annually at the rate of 10% for two years is Rs. 210.

Answer»

Given details are,

Rate = 10 % per annum

Compound Interest (CI) = Rs 210

Time (t) = 2 years

By using the formula,

Let P be ‘x’

CI = A – P

210 = P (1 + R/100)ⁿ – P

= P [(1 + R/100)ⁿ – 1]

= x [(1 + 10/100)² – 1]

= x [(110/100)² – 1]

210 = x ((1.1)² – 1)

x = 210 / ((1.1)² – 1)

= 210/0.21

= Rs 1000

∴ The required sum is Rs 1000.