Who is the founder of Panchayat Raj? (IFFCO 2022)

• This question involves calculating the principal amount when given the compound interest, rate, and time. Here's how to solve it:

• 1. Formula for Compound Interest:
The formula for compound interest is: A = P (1 + r/100)^n Where: * A = Final Amount * P = Principal Amount * r = Rate of Interest * n = Number of years

• 2. Calculate the Amount (A):
Since Compound Interest (CI) = A – P, we can find A: A = CI + P A = 1261 + P

• 3. Substitute in the formula and solve for P:
1261 + P = P (1 + 5/100)^3 1261 + P = P (1.05)^3 1261 + P = P (1.157625) 1261 = 0.157625P P = 1261 / 0.157625 P = 8000
Therefore, the principal amount is Rs. 8000.