Question

A principle amounts to $\text{Rs}13924$ in $2$ years at the compound interest of $18\%$ per annum compounded annually. Find the principle.

Answer 1

Since,

Amount $=P{(1+\frac{R}{100})}^T$ where, $T$ is number of years and $R$ is the rate

$⟹13924=P{(1+\frac{18}{100})}^2$

$\Rightarrow P=\frac{13924}{{\left(\frac{118}{100}\right)}^2}=10,000$

Hence, the principle is $\text{Rs}10,000$