Question

A man takes a loan of 8,000 at 15 % p.a. compound interest. If he pays back 3,200 at the end of each year, find the amount of the loan at the beginning of the third year.


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Answer 1

Answer:

Amount to be paid at the end of two years will be =Amountafter2years=8000(1+

100

10

)

2

=8000(1.1)

2

=8000(1.21) =9680 Amount already paid in 2 years is(3200+1500)=4700 Therefore amount of loan outstanding at the beginning of third year will be(9680−4700)=4980

Answer 2

Answer:

ANSWER IN THE ATTACHMENT ABOVE