Question

A loan was repaid in two annual instalments of Rs. 112 each. If the rate of interest be 10% per annum compounded annually, the sum borrowed was _________. *​

Answer 1

Answer:

P=₹185.12

Step-by-step explanation:

PARAMETERS GIVEN,

AMOUNT=₹112*2

               =₹224

PRINCIPAL=P

RATE%=10%

TIME=2 YEARS

WE KNOW,

A=P(1+R/100)^N

₹224 =P(1+10/100)^2

₹224=P(11/10)^2

₹224=121P/100

P=₹224*100/121

P=₹185.12

I HOPE YOU UNDERSTOOD