Question

Geeta borrowed Rs.50000 from state bank of India at 11% p.a compound interest. At the end of one year she repaid Rs.3500 and Rs.27720 at the end of the second year. Find the amount outstanding at the beginning of the third year.

Answer 1

Principle = Rs.50000

rate of interest,r = 11%

After 1 year, interest

$=\frac{50000 \times 11 \times 1}{100}$

$= 5500$

After 1 year, total

$= 50000 + 5500 = 55500$

At the end of one year she repaid Rs.3500.

Total outstanding after 2 year

$= 55500 - 3500 = 52000$

After 2 year, interest

$= \frac{52000 \times 11}{100} = 5720$

Total= 52000-5720=46280

Outstanding at the beginning of the third year

= 46280-27720

=18560

Hence,the amount outstanding at the beginning of the third year is 18560.(Ans)