Correct Answer - Option 3 : 4920
Given:
(i) Two annual instalments = Rs. 2646
(ii) Rate (R) = 5% pa CI
Calculations:
According to the question,
Principal = [2646/(1 + 5/100) + 2646/(1 + 5/100)2]
⇒ (2646 × 20)/21 + (2646 × 400)/441
⇒ 126 × 20 + 6 × 400
⇒ 2520 + 2400
⇒ 4920.
The amount borrowed by Miku was Rs. 4920.