A man borrowed some money and returned it in two equal instalments of ₹3,025 each. If the rate of interest is 10% per annum, compound annually, find the sum borrowed.
Answer & explanation
Correct answer: option 4
Rate of interest = 10%
= \(\frac{1}{10}\)
Principal Amount
1st installment 10 : 11
2nd installment 10² : 11²
{ As both installment are equal, So multiply 1st by 11 }
1st installment 10×11 : 11×11
------------------------------------------------------------------------
210 : 242
ATQ,
121R = 3025
1R = 25
Now, Sum invested = 210 × 25
= Rs. 5250