Question:A loan was repaid in two annual instalments of Rs. `121` each. If the rate of interest be `10%` per annum, compunded annuallly, the sum borrowed was : 

A `Rs. 200` 
B `Rs. 210` 
C `Rs. 217.80` 
D `Rs. 216` 

+ Answer
B 

+ Explanation
Principal 

= ( P.W. of Rs. `121` due `1` year hence) + (P.W. of Rs.`121` due `2` years hence)

`= [121/((1 + 10/100)) + 121/(1 + 10/100)^2]`

`= Rs. 210`

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