CAT Exam > CAT Questions > A sum of money is borrowed and paid back in t...
Start Learning for Free
A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was?
Most Upvoted Answer
A sum of money is borrowed and paid back in two equal amount instalmen...
Calculating the Principal Amount:
To calculate the principal amount, we can use the formula for compound interest:
\[ A = P(1 + \frac{r}{100})^n \]
where:
- A is the total amount paid back
- P is the principal amount
- r is the rate of interest
- n is the number of periods
Given Data:
- Total amount paid back, A = 882
- Number of periods, n = 2 (as the amount is paid back in 2 instalments)
- Rate of interest, r = 5%
Calculating the Principal Amount:
We need to calculate the principal amount borrowed. Given that the amount is paid back in two equal instalments, each instalment will be half of the total amount paid back:
\[ \text{Each instalment} = \frac{A}{2} = \frac{882}{2} = 441 \]
Now, let's substitute the values in the compound interest formula to find the principal amount:
\[ 441 = P(1 + \frac{5}{100})^2 \]
\[ 441 = P(1 + 0.05)^2 \]
\[ 441 = P(1.05)^2 \]
\[ 441 = 1.1025P \]
\[ P = \frac{441}{1.1025} \]
\[ P \approx 400 \]
Therefore, the principal amount borrowed was approximately 400 rupees.
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
|
Explore Courses for CAT exam
|
|
Similar CAT Doubts
Top Courses for CATView all
A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was?
Question Description
A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was?.
A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was?.
Solutions for A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? in English & in Hindi are available as part of our courses for CAT.
Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? defined & explained in the simplest way possible. Besides giving the explanation of
A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was?, a detailed solution for A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? has been provided alongside types of A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? theory, EduRev gives you an
ample number of questions to practice A sum of money is borrowed and paid back in two equal amount instalment of rupees 882 , allowing 5% compound interest.The sum borrowed was? tests, examples and also practice CAT tests.
|
|
Explore Courses for CAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup