Question

A loan was repaid in two annual instalments of Rs. 1210 each. If the rate of interest be 10% per annum, compounded annually, then the sum borrowed was

• A. Rs. 2000
• B. Rs. 2100
• C. Rs. 2300
• D. Rs. 1900

Answer 1

The correct option is B Rs. 2100

$\Rightarrow$ Here we have, $I=Rs.1210$ and $R=10\%$

$\Rightarrow$ The sum borrow = $[\frac{1210}{1+\frac{10}{100}}+\frac{1210}{(1+\frac{10}{100}{)}^2}]$

$\Rightarrow$ The sum borrow = $[1100+1000]=Rs.2100$