Question

A man borrows 8,000 rupees at 10% compound interest payable every six months. He repays
rupees2,500 at the end of every six months. Calculate the third payment he has to make at the
end of 18 months in order to clear the entire loan.​

Answer 1

Answer:

a man borrows money 8000 at 10% compound

10% compund = 8000/100× 10 = 800

The amount he have to give back = 8000+800 = 8800

He pays in every six months = 2500

the money he have paid in 12 months = 2500×2= 5000

So, the money he have to give to clear the entire loan = 8800-5000

=3800