A principal amount grows to Rs. 2916 after 2 years and to Rs. 3149.28 after 3 years under compound interest. What is the original principal?

Explanation

Let the principal be P and the annual compound interest rate be R%. After 3 years: P(1 + R/100)^3 = 3149.28 -- (1) After 2 years: P(1 + R/100)^2 = 2916 -- (2) Dividing equation (1) by (2): (1 + R/100) = 3149.28 / 2916 = 1.08 So, R = 8%. Using equation (2): P × (1.08)^2 = 2916 P × 1.1664 = 2916 P = 2916 / 1.1664 = Rs. 2500 Therefore, the original principal is Rs. 2500.