ABC26GN4202 · Compound Interest
Subject: General Aptitude · Chapter: Compound Interest · Exam: · Marks: · Difficulty:
A sum of money is borrowed and paid back in two annual instalments of ₹ 882 each allowing 5\% compound interest. The sum borrowed was
(a)₹ 1620
(b)₹ 1640
(c)₹ 1680
(d)₹ 1700
Answer
Explanation
Principal $$\begin{aligned} = & (P . W . \text { of } ₹ 882 \text { due } 1 \text { year hence }) \\ & \quad+(\text { P.W. of } ₹ 882 \text { due } 2 \text { years hence }) \\ = & {\left[\frac{882}{\left(1+\frac{5}{100}\right)}+\frac{882}{\left(1+\frac{5}{100}\right)^{2}}\right] } \\ = & \left(\frac{882 \times 20}{21}+\frac{882 \times 400}{441}\right)=₹ 1640 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.
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