SSC MTS Model Paper 3

Question : 31 of 150

Marks: +1, -0

A loan was repaid in two annual installments of Rs.1,210 each. If the rate of interest be 10% per annum compounded annually, the sum borrowed was

Solution:

Installment (I) = Rs.1210, R = 10%
We know (for two installment)

1 = { { Principle } }/ { ( { 100 }/ { 100 + { R } } ) + ( { 100 }/ { 100 + { R } } ) ^ { 2 } }

⇒ 1210 = { { Principle } } /{ { 10 }/ { 11 } + { 100 }/ { 121 } }

⇒ Principle =

1210 ×( { 110 + 100 }/ { 121 } )

= { 1210× 210 } /{ 121 }

∴ Principle = Rs.2,100

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