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:
let A borrow be Rs.x.
Borrowed by B = 51,750 - x
compound interest rate(r) = 7%
Amount paid by A after 3 year = amount paid by B after 4 year
Amount = $$principal(1 + r/100)^t$$
$$x(1 + 7/100)^3 = (51,750 - x)(1 + 7/100)^4$$
$$x = (51,750 - x) \times 107/100$$
100x = 5537250 - 107x
x = 5537250/207 = 26750
Borrowed by B = 51,750 - x = 51,750 - 26750 = 25000
Create a FREE account and get:
