A sum of money is borrowed and paid back in two annual installments of Rs. 882 each allowing 5% C.I. The sum borrowed was?
Q1. A sum of money is borrowed and paid back in two annual installments of Rs. 882 each allowing 5% C.I. The sum borrowed was?
Answer: Rs. 1640
Explanation: Present value of two instalments at 5% CI: 882/1.05 + 882/1.05² = 840 + 800 = Rs. 1,640.