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Three equal installments, each of Rs. 300, were paid at the end of 3 years on a sum borrowed at 25% interest compounded annually. Find the sum.1). 435.82). 585.63). 647.54). 756.4 |
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Answer» Let the PRINCIPAL or sum be Rs. x 3 installments of Rs. 300 for 3 years give Amount = x(1 + 25/100)3 ⇒ x(1 + 25/100)3 = 300(1 + 25/100)2 + 300(1 + 25/100)1 + 300(1 + 25/100)0 ⇒ x(1.25)3 = 300(1.25)2 + 300(1.25) + 300 ⇒ x = 1143.75/(1.25)3 ∴ the sum is Rs. 585.6 |
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