Question

A man borrows 10,000 at 10% compound
interest compounded yearly. At the end of
each year, he pays back 20% of the sum of thwe amount for that year.how moch money left unpaid just after second year​

Answer 1

Sum=Rs.10,000

Rate of interest=10%

Interest for one year=

100

10000×10×1

=Rs.1000

Total amount=10000+1000=Rs.11000

At the end of first year he pay =20% of 11000=

100

20

×11000=Rs.2200

Amount left=11000−2200=Rs.8800

∴ Interest for second year=

100

8800×1×10

=Rs.880

Total amount aftre 2 year=8800+880=Rs.9680

At the end of second year he pay=20%of9680=

100

20

×9680=Rs.1936

He pay again rs 3000 then the amount left=9680−1936=Rs.7744