Question

8,000 is lent out at 7% compound interest
for 2 years. At the end of the first year
3,560 are returned. Calculate :
(i) the interest paid for the second year.
(ii) the total interest paid in two years
(iii) the total amount of money paid in tw
years to clear the debt.
​

Answer 1

Answer:

The principal lent = Rs 8000

The rate of interest = 7%

The time period = t = 2 years

And

At the end of the first year Rupees 3560 are returned

To Find :

( 1 )  The interest paid for the second year

( 2 ) The total interest paid in two years

( 3 ) The total amount of money paid in 2 years to clear the debt​

Solution :

From Compound Interest

Amount = Principal ×  

For First year

 A = Rs 8000 ×  

     = Rs 8000 × 1.07

    = Rs 8560

So, Interest = Amount - Principal

                  = Rs 8560 - Rs 8000

                  = Rs 560

∴ interest for first year = Rs 560

Since, At the end of first years, Rs 3560 returned

So, Money left after first years = Rs 8560 - Rs 3560

                                                  = Rs 5000

( 1 )  The interest paid for the second year

For second year

 A = Rs 5000 ×  

     = Rs 5000 × 1.07

    = Rs 5350

So, Interest = Amount - Principal

                  = Rs 5350 - Rs 5000

                  = Rs 350

∴ interest for second year = Rs 350

( 2 ) The total interest paid in two years

Interest paid for first year + interest paid for second = Rs 560 + Rs 350

                                                                                     = Rs 910

( 3 ) The total amount of money paid in 2 years to clear the debt​  

     =  Money left after first years + total interest paid in second year    

     = Rs 5000 + Rs 350

     = Rs 5350    

Hence,

( 1 )  The interest paid for the second year is Rs 350

( 2 ) The total interest paid in two years is Rs 910

( 3 ) The total amount of money paid in 2 years to clear the debt​ is Rs 5350

Answer