A man borrows 10000 at 10% compound interest compounded yearly. At the end of the year he pays back 30% of the Sum borrowed. How much Money is left unpaid just after the second year ?
Answers
Answered by
1
please search on Google
Answered by
6
R = P (1+r)^1 at the end of one year. 20% of R is paid back. I assume 20 % of (money with compound interest) at the end of the year is paid back.
Remaining amount is : R - 20% R = 80% R = 0.80 P (1+r)
= 0.80 * 10000 * (1+10/100) = Rs 8000 * 1.10 = Rs 8800
For 2nd year R = 8800 (1+r)^1 = Rs 8800 * 1.10 = Rs 9680
Amount paid back at end of 2nd year is : 20% * Rs 9680
Amount left unpaid = Rs 9680 * 80 % = Rs 9680 * 0.80 = Rs 7744
Remaining amount is : R - 20% R = 80% R = 0.80 P (1+r)
= 0.80 * 10000 * (1+10/100) = Rs 8000 * 1.10 = Rs 8800
For 2nd year R = 8800 (1+r)^1 = Rs 8800 * 1.10 = Rs 9680
Amount paid back at end of 2nd year is : 20% * Rs 9680
Amount left unpaid = Rs 9680 * 80 % = Rs 9680 * 0.80 = Rs 7744
Similar questions