Ram borrows Rs.22500 at 10percent per annum, compounded annually. If he repays Rs. 11250 at the end of first year and Rs12550at the end of the second year, find the amount of loan outstanding against him at the end of third year.
Answers
Given that
Principal (P) = Rs.22500
Rate (r) =10% p.a.
Period (n) =3 years
We need to find the amount of loan outstanding against him at the end of the third year
Let us calculate the amount yearly
Beginning with the first year:
Amount at the end of first year = P(1+r/100)1 = 22500 (1+10/100)1 = 22500 x 11/10 = Rs.24750
Amount paid at the end of first-year =Rs. 11250 (given)
Balance = Rs.24750 – Rs.11250 =Rs.13500
Amount at the end of 2nd year = Rs.13500 (1+10/100)1 = Rs.13500 x 11/10 = Rs.14850
Amount paid at the end of 2nd-year =Rs.12550 (given)
Balance = Rs. (14850-12550) = Rs. 2300
Amount at the end of 3rd year = 2300 (1+10/100)1 = 2300 x 11/10 = Rs.2530
Amount paid at the end of 3rd year = Rs. 2530
Given that
Principal (P) = Rs.22500
Rate (r) =10% p.a.
Period (n) =3 years
We need to find theamount of loan outstanding against him at the end of the third year
Let us calculate the amount yearly
Beginning with the first year:
Amount at the end of first year = P(1+r/100)1 = 22500 (1+10/100)1 = 22500 x 11/10 = Rs.24750
Amount paid at the end of first-year =Rs. 11250 (given)
Balance = Rs.24750 – Rs.11250 =Rs.13500
Amount at the end of 2nd year = Rs.13500 (1+10/100)1 = Rs.13500 x 11/10 = Rs.14850
Amount paid at the end of 2nd-year =Rs.12550 (given)
Balance = Rs. (14850-12550) = Rs. 2300
Amount at the end of 3rd year = 2300 (1+10/100)1 = 2300 x 11/10 = Rs.2530
Amount paid at the end of 3rd year = Rs. 2530