Mathematics
A man borrows ₹ 10000 at 10% compound interest compounded yearly. At the end of each year, he pays back 20% of the amount for that year. How much money is left unpaid just after the second year ?
Compound Interest
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Answer
For first year :
P = ₹ 10000
R = 10%
T = 1 year
I = = ₹ 1000
Amount = P + I = ₹ 10000 + ₹ 1000 = ₹ 11000.
Amount paid back = 20% of the amount for that year
= = ₹ 2200
Amount left to pay at end of first year = ₹ 11000 - ₹ 2200 = ₹ 8800.
For second year :
P = ₹ 8800
R = 10%
T = 1 year
I = = ₹ 880
Amount = P + I = ₹ 8800 + ₹ 880 = ₹ 9680.
Amount paid back = 20% of the amount for that year
= = ₹ 1936
Amount left to pay at end of second year = ₹ 9680 - ₹ 1936 = ₹ 7744.
Hence, amount left to pay after second year = ₹ 7744.
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