A and B together borrowed a sum of Rs.51,750 at an interest rate of 7%p.a. compound interest in such a way that to settle the loan, A paid as much amount after three years as paid by B after 4 years from the day of borrowing. The sum (in Rs) borrowed by B was:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 25,000
Explanation:
let A borrow be Rs.x.
Borrowed by B = 51,750 - x
compound interest rate(r) = 7%
Amount paid by A after 3 year = amount paid by B after 4 year
Amount = principal (1 + r/100)t
x(1 + 7/100)3 = (51,750 - x)(1 + 7/100)4
x = (51,750 - x) × 107/100
100x = 5537250 - 107x
x = 5537250/207 = 26750
Borrowed by B = 51,750 - x = 51,750 - 26750 = 25000