Question

A sum of money is borrowed and paid back in two equal annual installments of 882, allowing 5% compound interest. the sum borrowed was

Answer 1

"The general formulae for installments in case of compound interest is P =x/(1+r/100) + x/(1+r/100)^2 ....x/(1+000)

And here we have to find P

Given x = 882 r = 5 and n=2

On substituting the values

We get P =882/ (1+5/100) + 882/ (1+5/100) ^2 p = 882*20/21 + 882*400/441

P= 840 + 800 = 1640

"

Answer 2

⛦Hᴇʀᴇ Is Yoᴜʀ Aɴsᴡᴇʀ⚑
▬▬▬▬▬▬▬▬▬▬▬▬☟

➧ Compound interest is:

➧ P = x / (1 +r / 100) +
　　 x / (1 + r / 100)²
　　 x / (1 + r / 100)ⁿ

➧ Here, we have to find P given:
➾ x = 882
➾ r = 5
➾ n = 2

➧ On substituting the values we get:

➧ P = 882 / (1 + 5 / 100) +
　　 882 / (1 + 5 / 100)²

➧ p = 882 × 20 / 21 +
　　 882 × 400 / 441

➾ P = 840 + 800
➾ p = 1640 ...✔

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Thanks...✊