Question

a man borrows rs.6000 at 5% C.I if he repays rs. 1200 at the end of each year find the amount outstanding at the beginning of the third year.

Answer 1

Answer :

Given Principle amount = Rs . 6000
And
Rate of interest = r = 5% compounded annually
So,
Interest after 1 year = $\frac{6000\times 5\times 1}{100}=60\times 5=Rs.300$
Total money owed after 1 year = 6000 + 300 = 6300
And
Rs. 1200 paid , So
Total money outstanding starting of second year = 6300 - 1200 = Rs.5100
And
Interest after 2 year = $\frac{5100\times 5\times 1}{100}=51\times 5=Rs.255$
Total money owed after 2 year = 5100 + 255 = 5355
And
Rs. 1200 paid , So
Total money outstanding starting of Third year = 5355 - 1200 = Rs.4155 ( Ans )