Question

A man borrows rs. 25,000 at 20% compound interest. at the end of every year he pays rs. 5000 as part of repayment. how much does he still owe after three such installments?

Answer 1

given:
C= 25000
R= 20% I= 0.20
N= 3

now

A = C/I [(1+I)^n-1]
= 25000/0.20 [(1.20)^3-1]
A= 91000