Question

A man borrows Rs 15000 at 10% compound interest compounded yearly.

At the end of each year, he pays back 25% of the amount for that year.

How much is left unpaid at the beginning of the third year?​

Answer 1

A man borrows Rs. 10,000 at 10% compound interest compounded yearly. At the end of each year, he pays back 20% of the amount for the year. How much money is left unpaid just after the second year?

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ANSWER

Sum=Rs.10,000

Rate of interest=10%

Interest for one year=

100

10000×10×1

=Rs.1000

Total amount=10000+1000=Rs.11000

At the end of first year he pay =20% of 11000=

100

20

×11000=Rs.2200

Amount left=11000−2200=Rs.8800

∴ Interest for second year=

100

8800×1×10

=Rs.880

Total amount aftre 2 year=8800+880=Rs.9680

At the end of second year he pay=20%of9680=

100

20

×9680=Rs.1936

He pay again rs 3000 then the amount left=9680−1936=Rs.7744