Let the principal be P. Using the compound interest formula: A = P(1 + r/100)^t Where A is the amount, P is the principal, r is the rate of interest, and t is the time in years. Given, A = ₹12,960, r = 10%, t = 2 years. Substitute these values into the formula: 12,960 = P(1 + 10/100)^2 12,960 = P(1.1)^2 12,960 = P × 1.21 Now, solve for P: P = 12,960 / 1.21 P = ₹10,710.74 So, the principal is approximately ₹10,710. Correct Option: b
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