The Sum Borrowed was :

A sum of money is paid back in two annual installments of ₹ 17,640 each, allowing 5% compound interest compounded annually. The sum borrowed was

  1.  ₹ 32,000
  2. ₹ 32,800
  3. ₹ 32,400
  4. ₹ 32,200
Anurag Mishra Professor Asked on 26th October 2015 in Maths.
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  • 2 Answer(s)

    Answer is (2): Rs.32,800

    Monis Rasool Professor Answered on 28th October 2015.
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    PRESENT WORTH (PW)

    = A/ (1+R/100)^n
    1+5/100 = 1+1/20 = 21/20

    PW FOR 1 YRS  +      PW FOR 2 YRS

    1764                                      1764
    ………                           +          ……….
    21/20                                     ( 21/20)^2

    21= 1764                      1764/21 = 84/21 = 4
    20 = 168                          4*20*20= 160

    168+160= 32800

    mini Default Answered on 31st August 2016.
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