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A borrowed sum was paid in the two annual installments of ₹ 121 each. If the rate of compound interest is 10% pa, what sum was borrowed?
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- ₹ 217.80
- ₹ 210
- ₹ 220
- ₹ 200
Correct Option: B
According to the question,
Borrowed sum = [121/{1/(1 + 10/100)}] + 121/(1 + 10/100)2
= 121/(11/10) + 121/{(11/10) x (11/10)]
=110 + 100
= ₹ 210
