SSC Quantitative Aptitude Simple Interest Question Bank Simple and Compound Interest (II)

  • question_answer
    A sum of money is paid back in two annual instalments of Rs. 17640 each, allowing 5% compound interest compounded annually. The sum borrowed was [SSC CGL Tier II, 2015]

    A) Rs. 32800

    B) Rs. 32400

    C) Rs. 32200

    D) Rs. 32000

    Correct Answer: A

    Solution :

    [a] Let the sum borrowed was Rs. x. Then, according to the question, \[17640={{P}_{1}}{{\left( 1+\frac{5}{100} \right)}^{1}}\] (\[\therefore \]Each instalment = Rs. 17640) \[\Rightarrow \]   \[17640={{P}_{1}}\left( \frac{21}{20} \right)\] \[\therefore \]      \[{{P}_{1}}=\frac{17640\times 20}{21}=\text{Rs}\text{.}\,\,16800\] and\[17640={{P}_{2}}{{\left( 1+\frac{5}{100} \right)}^{2}}\]\[\Rightarrow \]\[17640={{P}_{2}}\left( \frac{441}{400} \right)\] \[\therefore \]      \[{{P}_{2}}=\frac{17640\times 400}{441}=\text{Rs}\text{.}\,\,16000\] \[\therefore \]      Required amount \[=16800+16000=\text{Rs}.\,\,32800\]


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