Question

Mr. Ram borrows 20,000 for 2 years compounded annually. The rate of
interest for the two successive years are 9% and 10% respectively. If he repays
1,200 at the end of first year, 1,660 at the end of second year, find the
amount outstanding at the beginning of the third year.​

Answer 1

Answer:

CI on first year is 20000x9/100= 1800

Hans he pays 1200. i.e. remaining amount = 20000+1800-1200= 20600

CI for 2nd year=20600x10/100= 2060

total outstanding= 2060+20000= 22060