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The principal, which will amount to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest is?

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The principal, which will amount to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest is? Answer: Rs. 250

The formula for compound interest: A=P(1+R100) n Where: • A=270.40 (Amount) • R=4%(Rate) • n=2 (Time in years) • P=? (Principal) Substitute the values: 270.40=P(1+4/100) 2 270.40=P(1.04)2 270.40=P(1.0816) P=270.40/1.0816=250 Principal = Rs. 250

Question context

This question is part of 📏 Arithmetic Aptitude within the broader 🧠 Aptitude Mastery subject and appears in the PPSC Punjab Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.