If the compound interest on a certain sum is ₹3,688.8 at the rate of 12% per annum of compound interest for 2 years, then the sum (in ₹) is:

Given:

Compound Interest (CI) = ₹3,688.8

Rate of Interest (R) = 12% per annum

Time (T) = 2 years

Formula Used:

Amount (A) = Principal (P) × \((1 + \frac{R}{100})^T\)

Compound Interest (CI) = Amount (A) - Principal (P)

Calculation:

Let the principal sum be P.

Amount after 2 years (A) = P × \((1 + \frac{12}{100})^2\)

A = P × (1 + 0.12)²

A = P × (1.12)²

A = P × 1.2544

Compound Interest (CI) = A - P

3688.8 = 1.2544P - P

3688.8 = 0.2544P

P = 3688.8 / 0.2544

P = 14500

Therefore, the principal sum is ₹14,500.

The sum is ₹14,500.