For a principal amount of ₹ 2600 compounded anually, the amount after 1 year is ₹ 3000. Find the principal amount for the second year.

3000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

2000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

5000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A 3000
In compound interest, interest is calculated where the principal of the next year includes all of the accumulated interest from previous periods.
It is nothing but 'Interest on interest'
So the principal amount for the second year will be the amount obtained after the first year i.e, interest will be calculated on this amount = ₹ 3000

Thus, the principal amount for 2nd year = ₹ 3000.

Suggest Corrections

Similar questions

Q. In compound interest, if the 1st year Principal = ₹2600; Amount = ₹3000, then for the 2nd year Principal = ₹ _____.

In compound interest, the principal amount ₹ 2000 became ₹ 3500 after first year, then the principal for second year = ______

Q. Find the amount to be paid after 5 years for a principal amount of ₹300 at 2% per annum simple interest.

Q. A sum of money at simple interest amount to Rs. 2240 in 2 years and to Rs. 2600 in 5 years. What is the principal amount?

An amount of Rs. 500 gets added to the principal amount at the end of every year for 4 years. If the principal amount is Rs.4500, find the rate of interest.

Join BYJU'S Learning Program