a man borrows 10000 rupees at a compound interest rate of 8 % if he pays 2000 rupees at the end of each year then find the sum outstanding at the end of 3rd year
Answers
Step :- 1
For the first year :-
- Sum Borrowed, P = Rs 10000
- Rate of interest, r = 8 percent per annum
- Time, n = 1 year
We know,
Simple Interest and Compound interest on a certain sum of money Rs P invested at the rate of r % per annum for n years is same and given by
So,
Hence,
Amount to be paid at the end of first year,
Now,
- Man repay Rs 2000 at the end of the first year,
So,
- Balance amount = 10800 - 2000 = Rs 8800
Step :- 2
For second year,
- Sum, P = Rs 8800
- Rate of interest, r = 8 percent per annum
- Time, n = 1 year
We know,
Simple Interest and Compound interest on a certain sum of money Rs P invested at the rate of r % per annum for n years is same and given by
So,
Hence,
- Amount to be paid at the end of second year,
Now,
- Man repay Rs 2000 at the end of the second year,
So,
- Balance amount = 9504 - 2000 = Rs 7504
Step :- 3
For the third year,
- Sum, P = Rs 7504
- Rate of interest, r = 8 percent per annum
- Time, n = 1 year
We know,
Simple Interest and Compound interest on a certain sum of money Rs P invested at the rate of r % per annum for n years is same and given by
So,
Hence,
Amount to be paid at the end of third year,
Now,
- Man repay Rs 2000 at the end of the third year,
So,
Balance amount = 8104.32 - 2000 = Rs 6104.32
Additional information :-
1. Amount on certain sum of Rs P invested at the rate of r % per annum compounded annually for n years is
2. Amount on certain sum of Rs P invested at the rate of r % per annum compounded semi - annually for n years is
3. Amount on certain sum of Rs P invested at the rate of r % per annum compounded quarterly for n years is