Question

Sonali borrowed a certain sum at the rate of 15% per annum. if she paid at the end of 2 years is Rs.1290 is interest compounded annually, find the sum she borrowed.​

Answer 1

Dear Student,

◆ Answer -

Sum borrowed by Sonali = Rs. 975.4

● Explanation -

Payment due after 2 years is calculated by -

Payment due = P (1+r)^t

1290 = P (1 + 15/100)^2

1290 = P (1 + 0.15)^2

1290 = P × 1.15^2

1290 = P × 1.3225

P = 1290 / 1.3225

P = Rs. 975.4

Hence, the sum borrowed is Rs 975.4.

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