Question

A man borrows rs.10,000 at 10% c.I. Compounded yearly. At the end of each year, he pays back 30% of the sum borrowed. How much money is left unpaid just after 2nd year?

Answer 1

the formula is S. i×r×t/100

Answer 2

Thank you for asking this question. Here is your answer:

For first year:

P = 10000

R = 10%

T = 1yr

Interest = 1000

A = P + I = 10000 + 1000 = 11000

We know that he pays 20% of amount every year

20 / 100 x 11000 = 2200

So the total amount paid = 11000 - 2200 = 8800

For second year:

P = 8800  

R = 10%

T = 1 yr

Interest = 880

A = P+ I  = 8800 + 800 = 9680

He pays 20% of amount again

20/100 x 9680

= 1936

Total amount paid = 9680 - 1936 = 7744

So the loan is 7744

If there is any confusion please leave a comment below.