Question

What principal will amount to $Rs.1352$ in $2$ years at $4\%$ compound interest?

• A. $Rs.1250$
• B. $1200$
• C. $Rs.1000$
• D. $Rs.1300$

Answer 1

The correct option is A $Rs.1250$

Given data : $A=Rs.1352,r=4$ and $n=2$

We know that,

$A=p{[1+\frac{r}{100}]}^n$

$1352=p{[1+\frac{4}{100}]}^2$

$1352=p\times \frac{26}{25}\times \frac{26}{25}$

$\Rightarrow P=\text{Rs.}1250$