Compound Interest Practice Test 4

Question : 17 of 40

Marks: +1, -0

A sum of money is borrowed and paid back in two annual instalments of Rs. 882 each allowing 5% compound interest. What was the sum borrowed?

Solution:

Required sum

=882/(1+5/100)+882/(1+5/100)^2

=882[20/21+(20/21)^2]

=882×20/21(1+20/21)

=882×20/21×41/21=1640

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