A and B together borrowed a sum of ₹51,750 at an interest rate of 7%p.a. compound interest in such a way that to settle the loan, A paid as much amount after three years as paid by B after 4 years from the day of borrowing. The sum (in ₹) borrowed by B was:
Answer & explanation
Correct answer: option 3
7% = \(\frac{7 }{100}\)
So,
Sum borrowed by B : Sum borrowed by A
100 : 107
ATQ,
( 100 + 207 )R = 51750
207R = 51750
1R = 250
Now, Sum borrowed by B = 100R = 100 × 250 = Rs. 25000