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alexandr1967 [171]
2 years ago
7

Ram borrowed a certain sum of money and paid it back in 2 yrs equal installment.if the rate of compound interest was 4% p.a and

he paid back rs 1352 annually what sum did he borrowed ?​
Mathematics
1 answer:
Law Incorporation [45]2 years ago
5 0

Answer:

2250

Step-by-step explanation:

We want the amount paid, or the present value of the two payments

there are a couple of ways to do this, but because  there are only two cashflows I think it's easier to just discount them manually

1352*(1/1.04)+1352*(1/1.04)²

This is equal to

2250

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