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The principal that yield a compound interest of Rs.420 during the second year at 5% per annum is

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The principal that yield a compound interest of Rs.420 during the second year at 5% per annum is
1). Rs.7,000
2). Rs.5,000
3). Rs.8,000
4). Rs.6,000

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2 answers

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Answered by on | Votes 0 |
Right Answer for this question is Rs.5,000

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1 vote
Answered by on | Votes 1 |

Here is the right answer

Let the principal be Rs. P.
According to the question,

$p\times\frac{21}{20}=420\times 20$

P = 8000




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