A sum amounts to Rs.4410 in 2 years at the rate of 5% p.a. If interest was compounded yearly then what was the principal? Select:
A) rs . 4000  B) rs . 5000  C) rs . 4500  D) rs . 4800  E) rs . 5800

Rationale: ci = 4410 , r = 5 , n = 2 ci = p [ 1 + r / 100 ] ^ 2 = p [ 1 + 5 / 100 ] ^ 2 4410 = p [ 21 / 20 ] ^ 2 4410 [ 20 / 21 ] ^ 2 4000 answer : a
Answer: A