Question

A man borrowed a sum of money and agrees to pay it off by paying Rs 43,200 at the end of the
first year and Rs 34,992 at the end of the second year. If the rate of compound interest is 8% per
annum, find the sum borrowed.​

Answer 1

Answer:

For the payment of Rs. 43,200 at the end of the first year :

A = Rs. 43200 ; n = 1 year and r = 8 % . To find P.

A=P  

1

​  

(1+  

100

r

​  

)  

n

⇒43200=P  

1

​  

(1+  

100

8

​  

)  

1

 

⇒P  

1

​  

=Rs.43200×  

108

100

​  

=Rs.40000

For the payment of Rs. 34,992 at the end of the second year :

Rs.34922=P  

2

​  

(1+  

100

8

​  

)  

2

 

⇒P  

2

​  

=Rs.34922×(  

108

100

​  

)  

2

 

⇒P  

2

​  

=34922×  

108

100

​  

×  

108

100

​  

=Rs.30000

∴ Sum borrowed  = Rs. 40000 + Rs. 30000 = Rs. 70000

Step-by-step explanation:

Answer 2

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For the payment of Rs. 43,200 at the end of the first year :

A = Rs. 43200 ; n = 1 year and r = 8 % . To find P.

A=P1(1+100r)n⇒43200=P1(1+1008)1

⇒P1=Rs.43200×108100=Rs.40000

For the payment of Rs. 34,992 at the end of the second year :

Rs.34922=P2(1+1008)2

⇒P2=Rs.34922×(108100)2

⇒P2=34922×108100×108100=Rs.30000

∴ Sum borrowed  = Rs. 40000 + Rs. 30000 = Rs. 70000