Question

a man borrows rs 6000 at 5% ci per annum .if he repays rs 1200 at the end of each year find the amount of loan out standing at the beggining of third year

Answer 1

Step-by-step explanation:

Given Principle amount = Rs . 6000

And

Rate of interest = r = 5% compounded annually

So,

Interest after 1 year = 6000 × 5 × 1100 = 60× 5 = Rs . 300

Total money owed after 1 year = 6000 + 300 = 6300

And

Rs. 1200 paid , So

Total money starting of second year = 6300 - 1200 = Rs.5100

And

Interest after 2 year = 5100 × 5 × 1100 = 51× 5 = Rs . 255

money owned after 2 year = 5100 + 255 = 5355

And

Rs. 1200 paid , So

Total money outstanding starting of Third year = 5355 - 1200 = Rs.4155 ( Ans )