Question

What amount will sum up to Rs. 12100 at 10$\%$ per annum, in CI in $2$ years?

• A. $Rs.10,000$
• B. $Rs.11,000$
• C. $Rs.9,000$
• D. $Rs.8,000$

Answer 1

The correct option is A $Rs.10,000$

Given that, $A=Rs.12100,R=10\%$ and $T=2years$

To find out: Principal amount, $P$.

For compound interest, we know that, $A=P{(1+\frac{R}{100})}^T$

$\Rightarrow$ $12100=P\times {(1+\frac{10}{100})}^2$

$\Rightarrow$ $12100=P\times {\left(\frac{11}{10}\right)}^2$

$\therefore$ $P=12100\times \frac{100}{121}$

$\therefore$ $P=Rs.10,000.$

Hence, $Rs.10,000$ will sum up to $Rs.12,100$ at $10\%$ per annum, in $2$ years.