A man borrowed some money and agreed to pay off by paying Rs.3150 at the end of the 1st year and Rs. 4410 at the end of the 2nd year. If the rate of compound interest is 5% per annum, then the sum is

Explanation:

Rate of Interest is 5 %.

5%=1→Interest\20→Originalvalue

1st year 20 21

2nd year 400 441

After first year he return Rs. 3150

So,21 units = 3150

1 unit = 150

20 unit = 150×20= Rs. 3000

Same as for 2nd year

441 units = 4410

1 unit = 10

40 units = 10×400 = Rs.4000

Total sum is = 3000+4000

= Rs. 7000