The compound interest on a principal at 20% p.a. for 1.5 years, compounded annually, is ₹3,400. Find the principal.

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1. After 1 year the factor is $1+0.20=1.2$. For the extra half year the simple factor is $1+0.20	imes0.5=1.1$.
2. Total amount factor = $1.2	imes1.1=1.32$. So CI = $P(1.32-1)=0.32P$.
3. Given $0.32P=3400$, so $P=3400/0.32=10625$.
4. Principal = ₹10,625, so choice **(a)**.
FINAL_ANSWER: a

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