CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

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


A
3000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
2000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
2500
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
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.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Simple and Compound Interest
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon