Question

1. A man borrowed 310000 from a bank at 10% compound interest. If he repays
34000 at the end of the first year. find the total amount due at the end of second
year.

Answer 1

Answer:

₹31,100 is the amount due at the end of the 2nd year.

Step-by-step explanation:

Given:

(Compounded Annually)

• Amount borrowed = Principal (P) = ₹3,10,000

• Rate of interest (R) = 10%

• Time (n) = 2 years

• Amount (A) paid at the end of 1st year = ₹34,000

To find:

• Amount (A) paid at the end of the 2nd year.

Method to find:

$A = P(1+R/100)^n$

⇒ A = 310000(1 + 10/100)²

⇒ A = 310000 * 110/100 * 110/100

⇒ A = ₹375100

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Amount to be repaid = Compound Interest (C.I)

⇒ C.I = A - P

⇒ C.I = 375100 - 310000

⇒ C.I = ₹65,100

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The amount paid at the end of the 2nd year will be the amount paid at the end of the 1st year subtracted from the total amount to be paid (C.I). So,

Amount paid at the end of the 2nd year = 65100 - 34000

⇒ ₹31100

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Hope it helps!