Question

A man borrows Rs. 10,000 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?

• A. $Rs.6,389$
  
• B. $Rs.5,800$
• C. $Rs.5,103$
• D. $Rs.4,369$
  

Answer 1

The correct option is B $Rs.5,800$

Sum=Rs.10,000

Rate of interest=10%

Interest for one year$=\frac{10000\times 10\times 1}{100}=Rs.1000$

Total amount$=10000+1000=Rs.11000$

At the end of first year he pay =30% of 10000$=\frac{30}{100}\times 10000=Rs.3000$

Amount left$=11000-3000=Rs.8000$

$\therefore$ Interest for second year$=\frac{8000\times 1\times 10}{100}=Rs.800$

Total amount aftre 2 year$=8000+800=Rs.8800$

He pay again rs 3000 then the amount left$=8800-3000=Rs.5800$