Mathematics
A man borrows ₹ 6000 at 5 percent C.I. per annum. If he repays ₹ 1200 at the end of each year, find the amount of the loan outstanding at the beginning of the third year.
Compound Interest
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Answer
For first year :
P = ₹ 6000
T = 1 year
R = 5 %
I = = ₹ 300
Amount = ₹ 6000 + ₹ 300 = ₹ 6300
Amount payed at end of first year = ₹ 1200
Amount left at beginning of second year = ₹ 6300 - ₹ 1200 = ₹ 5100.
For second year :
P = ₹ 5100
R = 5%
T = 1 year
I = = ₹ 255
Amount = ₹ 5100 + ₹ 255 = ₹ 5355
Amount payed at end of second year = ₹ 1200
Amount left at beginning of third year = ₹ 5355 - ₹ 1200 = ₹ 4155.
Hence, amount left at beginning of third year = ₹ 4155.
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