A man borrows ₹15000 at 12% per annum. If he repays ₹4400 at the end of each year, find the amount outstanding against him at the beginning of the third year.

Asked by mahimakushwaha12.9sdatl | 23rd May, 2020, 08:53: PM

Expert Answer:

G i v e n colon space p r i n c i p a l space left parenthesis p right parenthesis equals 15000 comma space r a t e space o f space i n t e r e s t space equals space 12 percent sign space p e r space a n n u m
I n t e r e s t space f o r space t h e space f i r s t space y e a r space equals space 12 percent sign space o f space 15000 equals 12 over 100 cross times 15000 equals 12 cross times 150 equals 1800
A m o u n t space a f t e r space 1 space y e a r space equals space 15000 plus 1800 equals R s. space 16800
H e space r e p a y s space R s. space 4400
S o comma space t h e space a m o u n t space a t space t h e space b e g i n n i n g space o f space t h e space s e c o n d space y e a r space equals space 16800 minus 4400 space equals space R s. space 12400
I n t e r e s t space f o r space t h e space s e c o n d space y e a r space equals space 12 percent sign space o f space 12400 equals 12 over 100 cross times 12400 equals 12 cross times 124 equals 1488
A m o u n t space a f t e r space s e c o n d space y e a r space equals space 12400 plus 1488 equals R s. space 13888
H e space r e p a y s space R s. space 4400
T h u s comma space t h e space o u t s tan d i n g space a m o u n t space a t space t h e space b e g i n n i n g space o f space t h e space t h i r d space y e a r space equals 13888 minus 4400 equals R s. space 9488

Answered by Renu Varma | 24th May, 2020, 12:38: PM

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