Question

A principal amounts to Rs 13,924 in 2 years by compound interest at 18 p.c.p.a. Find the principal.

Answer 1

Here, A = Rs 13,924, R = 18 p.c.p.a., and N = 2 years

∴ P = 4 x 50 x 50 

∴ P = Rs 10,000 

∴ The principal is Rs 10,000.