A sum of money is borrowed and paid back in two annual instalments of tk. 882 each allowing 5% compound interst. The sum borrowed was:

A Tk. 1620

B tk. 1640

C tk. 1680

D tk. 1700

Solution

Correct Answer: Option C

Present worth of Tk. P due in n years is given by Present worth = Therefore, Principal = (Present worth of tk. 882 due 1 year hence) + (Present worth of tk. 882 due 2 years hence) = tk 840 + tk 800 = tk 1640

Solution

Practice More Questions on Our App!

Related Topics