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    A sum of Rs.16400 is borrowed to be paid back in 2 years by equal payments allowing 5% Compound Interest. Find the annual payment.
    Question

    A sum of Rs.16400 is borrowed to be paid back in 2 years by equal payments allowing 5% Compound Interest. Find the annual payment.

    A.

    Rs.7590

    B.

    Rs.8820

    C.

    Rs.7495

    D.

    Rs.7600

    Correct option is B

    Given: 

    total amount = Rs. 16400 

    Solution:

    total amount 820 unnit  = Rs . 16400 

    1 unit  = 20 

    then the installment of every year = 441×\times 20 = 8820

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