Question

A man borrowed 80000 at the rate of 10% p.a. compound interest, interest being compounded annually. How much amount should he have repaid at the end of the first year, by repaying 55000 at the end of the second year he can clear the loan?​

Answer 1

Answer:

YM for help

Explanation:

P= 80000

R = 10 % ‘

after first year amount = 88000

10 % rate compounded annually

If we paid 55000 at the end of the 2nd year it means we paid 110 % of amount left after paid certain from the 1st year . C.I always calculated on previous year amount

= \frac{55000}{110} \times 100 = 50000

So that certain amount is paid after first year then the remaining amount is equal to 50000.

i.e the certain amount paid after 1st year is equal to the = 88000 -50000= 38000