Question

a man takes loan of ₹216000 from a bank, to be returned in 3 years, at a rate of 16.67%per annum compound interst. the man returns ₹84000 and ₹58000 after first and second year. How much money will he have to return after third year to settle the loan
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Answer 1

Answer:

rupee 8499 is the answer

Answer 2

Concept:

We will find the amount payable after each year after adding the compound interest. Then will find out the principal amount for next year which will be interested amount less than amount paid.

Given:

Principal Loan Amount = ₹216000

Rate of Interest = 16.67% per annum

Find:

Amount to be paid at end of third year if ₹84000 and ₹58000 are paid at the end of first and second year.

Solution:

Amount to be paid after adding interest after first year: A = P ( 1 + r)
∴ A = 216000 ( 1 +0.1667) = 216000 (1.1667) = ₹ 252007.2

Amount after paying ₹84000, the principal for 2ns year becomes,
P = 252007.2 - 84000 = 168007.2

Thus amount payable after end of 2nd year = 168007.2 ( 1 + 0.1667)

∴ P = 196014

Thus principal for 3rd year becomes after paying ₹58000,
P= 196014 - 58000 = 138014

Thus, total amount payable at the end of third year ,
A = 138014 ( 1 + 0.1667) = 161021

Thus, the man has to pay ₹161021 at the end of third year to the bank.

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