Question

3. Mr. Kumar borrowed 15,000 for 2 years. The rate
of interest for the two successive years are 8% and
10% respectively. Find the outstanding amount at the end
of the second year.
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Answer 1

Answer:

Here Principal, P = Rs. 15000

Rate of interest, R = 8% for first year and 10% for second year

Interest for 1st year =

P×R×T100=15000×8×1100=Rs1200

Amount at the end of first year = Rs. 15000 + 1200 = Rs. 16200

Kumar repays Rs. 6200 at the end of first year.

∴Principal for second year = Rs. 16200 – Rs. 6200 = Rs. 10000

Interest for second year =

P×R×T100=10000×10×1100=Rs1000

Amount at the end of second year = Rs. 10000 + Rs. 1000 = Rs. 11000