A loan was repaid in two annual instalment of ₹ 1089 each. If the rate of interest be 10% per annum compounded annually, the sum borrowed was?

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Accepted Answer

Principle = ₹ 1089 ∴ P/{(1 + 10/100) + (1 + 10/100)2 } = 1089 ⇒ P = {(1089 x 10/11) + (1089 x 100/121)} = (990 + 900) = ₹ 1890

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