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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 = 30100×10000\dfrac{30}{100} \times 10000 = ₹ 3000.

So, at the end of each year ₹ 3000 is returned back.

For first year :

P = ₹ 10000

R = 10%

T = 1 year

I = P×R×T1000=10000×10×1100\dfrac{P \times R \times T}{1000} = \dfrac{10000 \times 10 \times 1}{100} = ₹ 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 = P×R×T100=8000×10×1100\dfrac{P \times R \times T}{100} = \dfrac{8000 \times 10 \times 1}{100} = ₹ 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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