The compound interest for two years at 12% per annum is ₹477. What is the Principal amount(in ₹) invested?

compound interest = $$P\left(1+\frac{R}{100}\right)^N\ -\ P$$

P = principal amount, R = rate of interest, N = time.

$$477=P\left(1+\frac{12}{100}\right)^2\ -\ P$$

$$477=P\left(\frac{112}{100}\right)^2\ -\ P$$

$$477=P\left[\left(\frac{112}{100}\right)^2\ -\ 1\right]$$

$$477=P\left[\frac{12544}{10000}\ -\ 1\right]$$

$$477=P\left[1.2544\ -\ 1\right]$$

$$477=0.2544P$$

$$P=\frac{477}{0.2544}$$

Principal amount = P = ₹1875