Question

Rahul borrowed rs. 1,00,000 @ 8% p.a. compound interest, interest being compounded annually. How much should he repay at the end of the first year, so that by repaying rs. 54000 at the end of the second year he can clear the loan ?

Answer 1

Have a look at this.......

Answer 2

Answer:

Rs 62640. [Ans]

Step-by-step explanation:

So, basically it is clear that the money will be there with him for 2 years.

Principle = Rs 100000

Rate = 8%.

Time = 2 years.

Amount = $P(1+\frac{r}{100})^{n}$

or, $100000(1+\frac{8}{100})^{2}$

or, 100000(1+0.08)²

or, 100000 * 1.1664

or, 116640

Now, the sum he should repay at the end of the first year, so that by repaying rs. 54000 at the end of the second year he can clear the loan = 116640 - 54000

or, Rs 62640.