Question

Peter borrows ₹12,000 for 2 years at 10
p.a. compo)und interest. He repays ₹8,000 at
the end of first year. Find :
(i) the amount at the end of first year, before
making the repayment.
(ii) the amount at the end of first year, after
making the repayment.
(iii) the principal for the second year.
(iv) the amount to be paid at the end of
second year, to clear the account.​

Answer 1

Answer:

Sum borrowed = ₹12000

Rate (R) = 10% p.a. compounded annually

Time (T) = 2 Years

Interest for the first year = PRT/100

= (12000 × 100 × 1)/100 = ₹ 1200

(i) Amount = ₹ 12000 + 1200 = ₹13200

Amount paid = ₹8000

(ii) Balance amount = ₹ 13200 – 800 = ₹5200

(iii) ∴ Principal for the second year = ₹5200

(iv) Interest for the second year = (5200 × 10 ×1)/100

= ₹ 520

∴ Amount = ₹ 5200 + 520 = ₹5720