SSC CGL 17 Aug 2021 Shift 3 Paper

Question : 74 of 100

Marks: +1, -0

A man borrowed a certain sum and agrees to repay it by paying

₹ 4000

at the end of first year and ₹ 7700 at the end of second year. If the rate of compound interest compounded annually is

10 \%

p.a., then find the sum (in ₹) borrowed.

Solution:

For the payment of

₹ 4000

at the end of first year at,

r=10 \%

A_{1}=P_{1}(1+\;{r}/{100})^{n}

⇒ \;\; 4000=P_{1}(1+\;{10}/{100})

⇒ \;\; P_{1}=\;{4000 × 100}/{110}=₹ \;{40000}/{11}

and

\;\; A_{2}=P_{2}(1+\;{r}/{100})^{n}

⇒ \;\; 7700=P_{2}(1+\;{10}/{100})^{2}

⇒ P_{2}=\;{7700 × 100 × 100}/{110 × 110}=₹ \;{70000}/{11}

∴

Total sum

=P_{1}+P_{2}

=\;{40000}/{11}+\;{70000}/{11}

=\;{110000}/{11}=₹ 10000

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