Question

Mr dubey borrows rs 100000 from state bank of india at 11% per annum compound interest he repays 41000 at end of first year

Answer 1

The amount outstanding at the beginning of the third year is Rs. 30000.

Explanation:

The complete question:

Mr. Dubey borrows Rs.100000 from state bank of India at 11 % p.a compound interest. He repays Rs. 41000 at the end of the first year and RS 47700 at the end of second year. Find the amount outstanding at the beginning of the third year.

Given,

Principle (P) = Rs.100000 and rate (r) = 11 % compounded annualy

Interest after first year = $\dfrac{100000\times 11\times 1}{100}$

= Rs. 11, 000

Total amount after 1 year = Rs.100000 + Rs. 11, 000

= Rs. 111,000

Total outstanding after 2 years = Rs. 111,000 - Rs. 41000

= Rs. 70000

Interest after second year = $\dfrac{70000\times 11}{100}$

= Rs. 7700

Total amount after 2 years = Rs. 70000 + Rs. 7700

= Rs. 77700

Total outstanding after 3 years = Rs. 77700 - Rs. 47700

= Rs. 30000

Thus, the amount outstanding at the beginning of the third year is Rs. 30000.

Answer 2

The amount outstanding at the beginning of the third year is Rs. 30000

Complete question:

Mr. Dubey borrows Rs. 100000 from state bank of India at 11% p.a compound interest. He repays Rs. 41000 at the end of the first year and Rs. 47700 at the end of second year. Find the amount outstanding at the beginning of the third year.

Answer:

Given:

Principal = Rs. 100000

Compound interest = 11% p.a

To find:

Amount outstanding at the beginning of the third year = ?

Solution:

The interest after first year is calculated with simple interest formula.

Now, the interest for first year is:

$I_1 = \frac{{P} \times \mathrm{R} \times \mathrm{T}}{100}=\frac{100000 \times 11 \times 1}{100}=\mathrm{Rs} .11000$

Now, the total money to be paid after 1 year is:

Rs. 100000 + Rs. 11000 = Rs. 111000

From question, Rs. 41000 is repaid.

So, the balance money need to be paid is:

Rs. 111000 - Rs. 41000 = Rs. 70000

Now, the interest for second year is:

$I_2=\frac{70000 \times 11}{100}=\mathrm{Rs.} 7700$

So, the total money to be paid after 2 years is:

Rs. 70000 + Rs. 7700 = Rs. 77700

From question, Rs. 47700 is repaid.

So, the balance money need to be paid is:

Rs. 77700 - Rs. 47700 = Rs. 30000