Question

a financial company offers compound interest at the rate of 5% for the first year and 6% for the second year. Find the interest on a sum of ₹63000 at the end of the second year​

Answer 1

Answer:

For the first year

P1=10,000,R=5%

A1=10,000(1+1005)

       =10000×100105

       =Rs.10500

At the end of the first year he repay 35% of the sum borrowed so he repay the amount=10000×10035=Rs3500

left amt=10000−3500=Rs.7000

For the second year

P2=Rs.7000, R=5%

A2=7000(1+1005)

       =7000×100105

       =Rs.7350

At the end of the second year he repay 42% of the sum borrowed so he repay the amt=10000×10042=Rs.4200

Left amt=7350−4200=Rs.3150

For the Third year

P3=Rs.3150,R=5%

A3=3150(1+1005)

       =3150×100