Question

A sum of money is paid back in two annual installments of rs 17640 each,allowing 5%compound interest compounded annually.find the sum was?

Answer 1

A sum of money is borrowed and paid back in two annual installments of Rs.882 that each follows at right.

In addition to this, the principle=present worth of rs.882 due to 1 years and hence present value is of 2 years worth.

The interest is 14% compound annually and grow the sum of 5458.32.