-
The principal that yields a compound interest of ₹
420 during the second year at 5% per annum is
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- ₹ 7,000
- ₹ 5,000
- ₹ 8,000
- ₹ 6,000
Correct Option: C
Given that , Compound Interest ( CI ) = ₹ 420 , P = ? , Rate ( R ) = 5%
Let the principal be Rs. P.
According to the question,
P | 1 + | 2 | − P | 1 + | = 420 | |||||||
100 | 100 |
P | 1 + | . | 1 + | − 1 | = 420 | ||||||
100 | 100 |
⇒ P | 1 + | × | = 420 | ||||
100 | 100 |
⇒ P | 1 + | × | = 420 | ||||
100 | 100 |
⇒ P | 1 + | = 420 × 20 | |||
20 |
⇒ P × | = 420 × 20 | |
20 |
⇒ P = | = ₹ 8000 | |
21 |