Question

Naimish borrows rs 40000 from axis bank at rate of 7.50% per annum at compound interest for 3 years .at end of every year he pays rs 15000 which consist of interest and a part of loan payment . how much extra he has to pay at the end of third year to finish his loan?

Answer 1

Amount at the end of one year
=40, 000 ( 1 + 7.5/100)
=Rs. 43,000

Amount repaid by Naimish = 15000
Principal for the second year
= 43000 - 15000
=Rs. 28,000

Amount at the end of the second year
=28,000(1+7.5/100)
= Rs. 30,100

Amount repaid at the end of the second year
= 15, 000
Principal for the third year
= 30100-15000
= 15100

Amount at the end of three years
= 15100 ( 1 + 7.5/100)
= 1623.25

Extra amount that he gast to pay to finish his loan at the end of the third year
= 1623.25 - 15000
=Rs. 123.25 (Ans)

Hope this helps! :)