A sum of money is paid back in two annual ins | vedclass

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(B) Let the principal amount borrowed be $P$. The formula for the amount $A$ paid in installments for compound interest is given by: $P = \frac{X}{(1+

Vedclass · Accepted Answer

$32,800$

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(B) Let the principal amount borrowed be $P$. The formula for the amount $A$ paid in installments for compound interest is given by: $P = \frac{X}{(1+r/100)^1} + \frac{X}{(1+r/100)^2}$,where $X$ is the installment amount and $r$ is the rate of interest.Given $X = ₹ 17,640$ and $r = 5 \%$.$P = \frac{17640}{(1 + 5/100)^1} + \frac{17640}{(1 + 5/100)^2}$$P = \frac{17640}{1.05} + \frac{17640}{(1.05)^2}$$P = \frac{17640}{21/20} + \frac{17640}{441/400}$$P = 17640 	imes \frac{20}{21} + 17640 	imes \frac{400}{441}$$P = 840 	imes 20 + 40 	imes 400$$P = 16800 + 16000 = ₹ 32,800$.Thus,the sum borrowed was ₹ $32,800$.

$A$ sum of money is paid back in two annual instalments of ₹ $17,640$ each,allowing $5 \%$ compound interest compounded annually. The sum borrowed was (in ₹):

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