Arithmetichard · Past Paper

A sum of money is borrowed and paid back in two equal annual installments of Rs 882 each, allowing 5% compound interest. Find the sum borrowed.

ARs 1600
BRs 1640
CRs 1700
DRs 1800

✓ Correct Answer: BRs 1640

P = 882/1.05 + 882/(1.05)^2 = 840 + 800 = 1640.

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