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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Question

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.

KnowledgeBoat · Accepted 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.

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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