A man borrowed some money and agreed to pay-off by paying

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A man borrowed some money and agreed to pay-off by paying Rs. 3150 at the end of the 1st year and Rs. 4410 at the end of the 2nd year. If the rate of compound interest is 5% per annum, then the sum is

1. Rs. 5000
2. Rs. 6500
3. Rs. 7000
4. Rs. 9200

Correct Option: C

As per the given in question , y₁ = Rs. 3150 , y₂ = Rs. 4410 , R = 5%

P =	x₁					+	x₂

	1 +	R						1 +	R		2
		10							10

P = Rs.		3150 × 20	+	4410 × 400
		21		441

P = Rs. (3000 + 4000)
P = Rs. 7000