Question

Sadhakar borrows Rs22500 at rate of 10% p.a.compuund annually if he repays Rs 11250 at the end of 1st year and Rs 12550 at the end of 2nd year, find the amount of loan outstanding against him at the end of 3rd year

Answer 1

P= Rs 22500
R= 10% p.a.

C.I for the first year:

(22500 x 10 x 1)/100=2250

Amount for the first year:
 
   22500
 +  2250
= 24750
- 11250 [Repayment]
=13500
therefore, principle for the second year = Rs 13500

C.I for the second year:

(13500 x 10 x 1)/100 = 1350

Amount for the second year:
 
    13500
 +   1350
=  14850
-   12550 [Repayment]
=    2300
Therefore principle for the third year= Rs 2300

C.I for the third year:
(2300 x 10 x 1)/100 = 230

Amount for the third year:
  2300
+  230
=2530
Therefore outstanding loan at the end of the third year = Rs 2530