what is the principal amount which earns rs 132 as compound interest..., Compound Interest, General Mathematics

Question:what is the principal amount which earns Rs.`132` as compound interest for the second year at `10%` per annum ?

A `Rs.1000` 
B `Rs. 1200` 
C `Rs. 1320` 
D `Rs. 1188`

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+ AnswerB

+ ExplanationLet the principal at the end of first year be Rs.x.

Then,`(x xx 10 xx 1)/100`

`= 132`

`or x = 1320`.

Now,let the original principal be Rs.p

Then, amount after `1` year

`= p + (p xx 10 xx 1)/100`

`= (11p)/10`.

`:. (11p)/10 = 1320`

`or p = (1320 xx 10)/11`

`= Rs. 1200`.

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