Question

Mr. Ravi borrows ₹ 16,000 for 2 years. The rate of interest for the two successive
years are 10% and 12% respectively. If he repays ₹ 5,600 at the end of first year,
find the amount outstanding at the end of the second year.

Answer 1

Answer:

13440

Step-by-step explanation:

P=Rs.16,000, T=2yrs, R=10% and 12% p.a

For 1st yr:

16000 X 1 X10 ÷ 100 = 1600

Amount = 16000 + 1600 = 17,600

He repays 5600 at the end of 1st yr

Therefore, 17,600 - 5600 = 12000

New Principal = 12000

For 2nd yr,

Interest = 12000 X 1 X 12 ÷ 100 = 1440

Amount = 12000 + 1440 = 13440

Therefore, the amount outstanding for the 2nd yr is = Rs. 13,440

Answer 2

Answer:

13440

Step-by-step explanation:

P=Rs.16,000, T=2yrs, R=10% and 12% p.a

For 1st yr:

16000 X 1 X10 ÷ 100 = 1600

Amount = 16000 + 1600 = 17,600

He repays 5600 at the end of 1st yr

Therefore, 17,600 - 5600 = 12000

New Principal = 12000

For 2nd yr,

Interest = 12000 X 1 X 12 ÷ 100 = 1440

Amount = 12000 + 1440 = 13440

Therefore, the amount outstanding for the 2nd yr is = Rs. 13,440