Multiple choice

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

  1. $Rs. 1250$
  2. $1200$
  3. $Rs. 1000$
  4. $Rs. 1300$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A = P(1 + r/100)^n. 1352 = P(1 + 4/100)^2 = P(1.04)^2 = P(1.0816). P = 1352 / 1.0816 = 1250.

AI explanation

Using the compound interest formula, Amount equals Principal multiplied by the quantity (1 plus R divided by 100) raised to the power of n, where the amount is Rs. 1352, the rate is 4 percent, and the time is 2 years. This sets up the equation 1352 equals P multiplied by the quantity 1.04 squared, which means 1352 equals P multiplied by 1.0816. Solving for P by dividing 1352 by 1.0816 gives the principal of Rs. 1250. The result is Rs. 1250.

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