Question

a man borrows rupees 6000 5% compound interest if we request rupees 1200 at the end of cm find the amount outstanding at the beginning of the third year

Answer 1

Interest payable @ the end of the first year @ 5% interest on Rs 6000 =





Amount payable @ the end of the first year = Rs 6000 + Rs 300 = Rs 6300
Amount paid @ the end of the first year = Rs 1200
Therefore, Principal for the second year = Rs 6300 – Rs 1200 = Rs 5100

Interest payable @ the end of the second year @ 5% interest on Rs 5100 =





Amount payable @ the end of the second year = Rs 5100 + Rs 255 = Rs 5355
Amount paid @ the end of the second year = Rs 1200
Therefore, Principal for the third year = Rs 5355 – Rs 1200 = Rs 4155