On a certain principal the compound interest compounded

On a certain principal the compound interest compounded annually for the second year at 10% per annum is ₹ 132. The principal is

Let principal be Rs. P.
Here , Compound Interest ( CI ) = ₹ 132 , P = ? , Rate ( R ) = 10% , Time = 2 years

Interest in 1 year =	PRT
	100

Interest in 1 year =	P × 10 × 1	= ₹	P
	100		10

According to question,

∴ P

1 +

− 1

−

= 132

100

⇒ P

1 +

− 1

−

= 132

100

⇒ P			11		²	− 1		−	P	= 132
			10						10

⇒ P		121	− 1		-	P	= 132
		100				10

⇒ P		121 - 100			-	P	= 132
		100				10

⇒	21P	−	P	= 132
	100		10

⇒	21P − 10P	= 132
	100

⇒	11P	= 132
	100

⇒ P =	132 × 100	= ₹ 1200
	11