A sum becomes ₹15,876 in 2 years at 12% compound interest annually. Find the principal.

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Accepted Answer

1. Use the compound interest formula: $A=P(1+r)^t$.  
2. Here $A=15876$, $r=0.12$, $t=2$. So $(1+r)^t=(1.12)^2=1.2544$.  
3. Solve for $P$: $P=\dfrac{A}{(1+r)^t}=\dfrac{15876}{1.2544}=12656.25$.  
4. So the principal is **₹12,656.25**, which is option **(a)**.  
FINAL_ANSWER: a

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