The maturity value of a certain sum after two years at 20% p.a. interest compounded annually isRs. 14,400/-. Find the principal amount

The formula for compound interest is A = P(1 + r/n)^(nt), where:

A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

In this case, we know that A = Rs. 14,400, r = 20% or 0.20 (in decimal), n = 1 (since it's compounded annually), and t = 2 years. We need to find P.

So, we can rearrange the formula to solve for P:

P = A / (1 + r/n)^(nt)

Substituting the given values:

P = 14400 / (1 + 0.20/1)^(1*2) P = 14400 / (1.20)^2 P = 14400 / 1.44 P = Rs. 10,000

So, the principal amount is Rs. 10,000.