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.

₹5,250

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