Mathematics
A man borrows ₹ 10000 at 10% compound interest compounded yearly. At the end of each year, he pays back 30% of the sum borrowed. How much money is left unpaid just after the second year ?
Compound Interest
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Answer
30% of sum borrowed = = ₹ 3000.
So, at the end of each year ₹ 3000 is returned back.
For first year :
P = ₹ 10000
R = 10%
T = 1 year
I = = ₹ 1000
Amount = P + I = ₹ 10000 + ₹ 1000 = ₹ 11000.
Amount left to pay at end of first year = ₹ 11000 - ₹ 3000 = ₹ 8000.
For second year :
P = ₹ 8000
R = 10%
T = 1 year
I = = ₹ 800
Amount = P + I = ₹ 8000 + ₹ 800 = ₹ 8800.
Amount left to pay at end of second year = ₹ 8800 - ₹ 3000 = ₹ 5800.
Hence, amount left to pay after second year = ₹ 5800.
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