The principal, which will amount to ₹ 270.40 in 2 years

The principal, which will amount to ₹ 270.40 in 2 years at the rate of 4% per annum compound interest, is

Let the principal be ₹ P.
Here , A = ₹ 270.40 , r = 4%, n = 2 years
Using the given formula ,

A = P		1 +	r		ⁿ
			100

∴ 270.40 = P		1 +	4		²
			100

⇒ 270.40 = P (1 + 0.04)²

⇒ P =	270.40	= ₹ 250
	1.04 × 1.04