The principal, which will amount to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest, is
Q. The principal, which will amount to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest, is
Answer: Rs. 250
Notes: Let the principal be Rs.P. $latex \therefore 270.40=P\left ( 1+\frac{4}{100} \right )^{2}&s=1$ $latex =>270.40=P\left ( 1+0.04 \right )^{2}&s=1$ $latex =>P=\frac{270.40}{1.04\times 1.04}=Rs. 250&s=1$ Hence option [B] is the right answer.