What is the principle amount which earns Rs. 132 as compound

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What is the principle amount which earns Rs. 132 as compound interest for the second years at 10% per annum ?

1. Rs. 1000
2. Rs. 1200
3. Rs. 1320
4. None of these

Correct Option: B

Let P the principle at the end of first year.
Then (P x 10 x 1)/100 =132
⇒ P =1320

Let Q be the original principle
Then, Q + (Q x 10 x 1)/100 =1320
⇒ Q =1200