Question

Anu borrowed rs.800 at rate of interest 10% . He repaid rs.400 at the end of first year.What is the amount required to repay at the end of second year to discharge his loan which was calculated at compound interest?

Answer 1

Answer:

rs 528

Step-by-step explanation:

Amount paid at the end of 1 year  = 800[1 + 10/100] = 880

Amount left as principal for the second year = 880-400 = 480

Amount to be paid after 2nd year = 480 [1 + 10/100] = Rs.528

Answer 2

Given:

(i) Anu borrowed rs.800 at rate of interest 10%.

(ii) He repaid rs.400 at the end of first year.

To find:

(i) Amount required to repay at the end of second year to discharge his loan.

Solution:

Given, the principal money (P) is Rs 800

Rate(R) = 10% p.a.

Time(T) = 2 years.

Simple Interest (SI) = PRT/100

= (800*10*2)/100

= Rs  160.

Total amount (A) to be repayed after 2 years

= P + SI

= Rs (800+160)

= Rs 960

So, amount to be payed on 2nd year = A - Amount payed in first year

= Rs (960-400)

= Rs 560

So, the required answer is Rs 560.