₹ 1000 is borrowed at 10% per annum C.I. If ₹ 300 is repaid at the end of each year, the amount of loan outstanding at the end of 2nd year is :

1. ₹ 880

2. ₹ 610

3. ₹ 580

4. ₹ 484

For first year :

P = ₹ 1000

R = 10%

T = 1 year

I = $\dfrac{P \times R \times T}{100} = \dfrac{1000 \times 10 \times 1}{100}$ = ₹ 100.

Amount = P + I = ₹ 1000 + ₹ 100 = ₹ 1100.

₹ 300 is repaid at end of each year.

Amount left at end of first year = ₹ 1100 - ₹ 300 = ₹ 800.

For second year :

P = ₹ 800

R = 10%

T = 1 year

I = $\dfrac{P \times R \times T}{100} = \dfrac{800 \times 10 \times 1}{100}$ = ₹ 80.

Amount = P + I = ₹ 800 + ₹ 80 = ₹ 880.

Hence, Option 1 is the correct option.