A merchant commences with a certain capital and gains annually at the rate of 30 per cent. At the end of 2 years he has worth Rs 10,000. What was the original capital?

Let the Original capital amount be Rs. P

Given after 2 years the amount is Rs. 10000

Rate of interest = 30%

According to the question,

$P x \frac{130}{100} x \frac{130}{100} = 10000=> P = \frac{1000000}{169} = 5917$

Therefore, the capital amount P = Rs. 5917