Question

At the end of cach year he pays back 50. At the A man borrows 200 at 5% compound interest. end of 4 years he gets .
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Answer 1

Answer:

Amount of one year

=200[1+

100

5

]

=200×

20

21

=210

∴ At the end of year he pays back Rs. 50. So the principal for the second year is Rs. 160.

∴ Amount of Second year

=160[1+

100

5

]

=160×

20

21

=168

∴ At the end of year he pays back Rs. 50.

So rest amount = 168 -50 = Rs. 118.

This amount is principal amount for third year.

∴ Amount of third year

=118[1+

100

5

]

=118×

20

21

=123.90

At the end of years he pays back Rs. 50.

So rest amount

=123.90−50=Rs.73.90

This amount is principal for fourth year.

∴ Amount of fourth year

=73.90[1+

100

5

]

=73.90×

20

21

=77.59

At the end of year he pays back Rs. 50.

So rest amount

=77.595−50=Rs.27.59

∴ At the end of fourth year he owes Rs. 27.59.

Step-by-step explanation:

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