Question

A man borrows rupees 6000 at 5 % ci per annum. If he repays 1200 at the end of the year find the amount of the loan outstanding at the beginning of the third year.

Answer 1

1st year ci= 1200
2nd year ci= 1200+1200×5%=1260
so his money becomes (6000+1200+1260)=8460 at the beginning of the third year