find the principal that yield yield a compound interest of rupees 1632 in 2 years at 4% is rate of interest per annum

dear student,

we know that 
amount = principal + compound  interest
compound interest = amount - principal 
compound interest = 1632
Amount = P ( 1 + r100)n   , where P = principal , time = n , r = rate of interest 
1632 = P(1+ r100)n - P 
1632 = P( 1 + 4100)2 - P 
1632 =  P( 2625)2- P
1632 = P[ 676625- 1]
1632 = P[ 676-625625]
1632 = P[51625]
P = 1632×62551
P = 20000

Regards
 

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