a sum amount to 4410 after two years at 5% compound interest per annum. what is the principal?
Answer (1)
6th Nov, 2025
Compound interest = P(1+R/100)^n-1
But here the amount is given.
So we will use A = P(1+R/100)^n-1
Principal = P
R = 5%
n = 2 years
A = 4410
A = P(1+R/100)^n
4410 = P(1+5/100)²
4410 = P(1+1/20)²
4410 = P(21/20)²
10 = P/400
P = 4000
Hence, the principal is 4000.
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