Answer:
Original sum of money = $2246.51
Step-by-step explanation:
Interest = $96.60
Interest is compounded 6 times in a year ; n = 6
time = 1 year ; Rate of interest (r) = 4.2%
Interest = Future Value - Principal Value ...........(1)
[tex]\text{Future Value = }Principal\cdot (1+\frac{r}{100\times n})^{n\cdot t}\\\\\text{Substituting this value in equation (1) , We get }\\\\Interest=Principal\cdot (1+\frac{r}{100\times n})^{n\cdot t}-Principal\\\\\implies 96.60=Principal[\cdot (1+\frac{4.2}{100\times 6})^{6\cdot 1}-1]\\\\\implies Principal=\$2246.51[/tex]
Hence, the original sum of money borrowed = $2246.51
