What is the principle amount which earns Rs. 132 as compound interest for the second years at 10% per annum?
Correct Answer: Rs. 1200
Explanation:
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
