A sum of money is borrowed and paid back in two equal instalments of rs 882,allowing 5% compound interest. Find the sum borrowed

2

Suri GangulaFaculty 9y ago

Download Simple and Compound Interest formulas Sheet for CAT, which gives concepts, tips on this topic.

Akhilesh Singh 10y ago

The general formulae for installments in case of compound interest is
P =x/(1+r/100) + x/(1+r/100)^2 ....x/(1+r/100)^n
Here we have to find P given x = 882 r = 5 and n=2
On substituting the values we get
P =882/(1+5/100) + 882/(1+5/100)^2
p = 882*20/21+ 882*400/441
P= 840 + 800 => p = 1640
Hope that helps.

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