A man borrows ₹50000 at a compound interest rate of 8% per annum, if he repays ₹10000 at the end of each year.Find the sum outstanding at third year.
Answers
Answer :
The amount of loan (outstanding sum) after 3 years = 37520 + 3002 = 40522 Rs
Step-by-step Explanation :
Given : Principal = 50000 Rs
Interest = 8 % per annum
Repay each year = 10000 Rs
To find : amount of loan after 3 year's = ?
For the first year, P = 50000 Rs , R =.8., T = 1.
Interest = principal × Rate × Time / 100
I = 50000 × 8 × 1 / 100
I = 400000 / 100
I = 4000
The amount of loan after one year = P + I = 50000 + 4000 = 54000 Rs
He pays back Rs 10000 at the end of the first year.
So, the new principal at the begining of the second year = Rs 54000 - Rs 10000 = 44000 Rs
For the second year, P = Rs 44000, R = 8, T = 1.
I = 44000 × 8 × 1 / 100
I = 352000 / 100
I = 3520 Rs
The amount of loan after two years = 44000 + 3520 = 47520 Rs
He pays back Rs 10000 at the end of the second year.
So, the new principal at the beginning of the third year = Rs 47520 - Rs 10000 = 37520
For the third year, P = Rs 37520, R = 8 , T = 1.
I = 37520 × 8 × 1 /100
I = 300160 / 100
I = 3001.6 = 3002 Rs
The amount of loan (outstanding sum) after 3 years = 37520 + 3002 = 40522 Rs
Answer:
Outstanding Sum at third year is Rs. 30521.6
Step-by-step explanation:
Year 1
Principal=50000
Interest rate = 8%
Interest = PRT/100
= 50000 X 8 X 1/100
= 4000
Total amount outstanding after year 1 = Principal + Interest
= 54000
Repayment amount = 10000
Balance outstanding for next year = 54000 – 10000
= 44000
Year 2
New Principal = Balance outstanding of previous year
= 44000
Interest = PRT/100
= 44000*8*1/100
= 3520
Previous year outstanding = 44000
Interest accrued = 3520
Repayment amount = 10000
Balance outstanding for next year = Previous year outstanding + interest
accrued – Repayment amount
Balance outstanding for next year = 4000 + 3520 – 10000
=37520
Year 3
New Principal = Balance outstanding of previous year
= 37520
Interest = PRT/100
= 37520*8*1/100
= 3001.6
Previous year outstanding = 37520
Repayment amount = 10000
Interest accrued = 3001.6
Balance principal for next year = Previous year outstanding + interest
accrued – Repayment amount
Balance principal for next year = 37520 + 3001.6 – 10000
= 30521.6
The sum outstanding at third year is Rs. 30521.6