A sum becomes ₹12100 in 2 years at 10% Compound interest annually. Find the principal.

Correct option is A

Given :

Amount after 2 years A = ₹12100
Rate of interest R = 10% per annum
Time T = 2 years
Compound Interest is compounded annually.

Formula Used :
A $$= P\left(1+\frac{R}{100}\right)^T$$​​
Solution :

12100 = P$$\left(1+\frac{10}{100}\right)^2$$​​

12100 = P$$(1.1)^2$$​​

12100 = $$P \times 1.21$$​​

P $$= \frac{12100}{1.21} = 10000$$​​

Principal = ₹10,000