Correct Answer - Option 1 : Rs. 3600
Given:
Rate = 10% per annum
Compound Interest = Rs. 756
Time 2 years
Formula used:
Compound Interest = P{1 + (Rate/100)}Time - P
Where, P = Principal
Calculation:
By the using formula,
Compound Interest = P{1 + (Rate/100)}Time - P
⇒ 756 = P{1 + (10/100)}2 - P
⇒ 756 = P{(11/10)2 - 1}
⇒ 756 = P × (21/100)
⇒ P = 36 × 100 = 3600
∴ The Principal is Rs. 3600