SSC CGL Tier II 25 Oct 2015 Paper 1

Question : 25 of 100

Marks: +1, -0

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

Solution:

(1) Sum borrowed = Present worth of Rs. 17640 due 1 year hence + Present worth of Rs. 17640 due 2 years hence

=R s . ( {17640}/{ (1+ {5}/{100} )}+ {17640}/{ (1+ {5}/{100} )^{2}} )

= {Rs} (17640 ×{20}/{21}+17640×{20}/{21}×{20}/{21} )

= Rs. (16800 + 16000)

= Rs. 32800

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