# 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

- ₹ 32,000
- ₹ 32,800
- ₹ 32,400
- ₹ 32,200

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