John borrowed some amount of money from a bank at the rate of 10% per annum on compound interest for which interest is compounded annually. If he repaid his loan by paying *21,961.50 at the end of 4 years, what is the amount he borrowed?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 15,000
Formula used
Amount = Principal × (1 + (rate/100))time
21961.50 = Principal × (1 + (10/100))4
Principal amount = 21961.5 × 10000/14641 = 15000 Rs