A person borrowed a certain sum at 10% p.a. for three years, interest being compounded annually. At the end of two years, he repaid a sum of Rs. 6,634 and at the end of the third year, he cleared off the debt by paying Rs.13,200. What was the sum borrowed by him?
Show answer & explanation
Correct answer: C
Explanation
correct answer is option 3 i.e. Rs. 15,400
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Concept |
Understanding |
Application |
Fair calculation |
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A = P[1 + r/100]T CI = A – P
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r = 10% T = 3 years Let Sum = P |
Now the amount remaining after paying 6634 = (13200/110) x 100 = 12000 Actual amount after 2 years=12000+6634=18634 |
13200/1.1 = 12000 |
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A = P[1 + r/100]T 18634 = P[1 + 10/100]2 P = 15400 |
18634 x 100/121 = 18634/1.21 = 15400
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