The principal, which will amount to Rs.270.40 in 2 years at the rate of 4% per annum compound interest, is
Options:
A . Rs.220
B . Rs.200
C . Rs.250
D . Rs.225
Answer: Option C Answer: (c)Using Rule 1,Let the principal be Rs.P.270.40 = P $(1 + 4/100)^2$270.40 = P $(1 + 0.04)^2$P = ${270.40}/{1.04 × 1.04}$ = Rs.250
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