Question

A man borrows $Rs.6000$ at $5\%$ $C.I.$ per annum$.$ if the repays $Rs.1200$ at the end of the each year$,$ find the amount of the loan outstanding at the beginning of the third year$.$

• A. Rs 4155.0
• B. Rs 5555.5
• C. Rs 5452.0
• D. Rs 4452.5
• E. None of these

Answer 1

Answer: (A)

Rs 4155.0

Given Principle amount $=Rs.6000$

And$,$

Rate of interest $=r=5\%$ compounded annually

So$,$

Interest after $1year=6000\times \frac{5}{100}\times 1=60\times 5=Rs.300$

Total money owed after $1year=6000+300=6300$

And$,$

$Rs.1200$ paid $,$ So

Total money starting of second year $=6300-1200=Rs.5100$

And$,$

Interest after $2year=5100\times 5\times 1100=51\times 5=Rs.255$

money owned after $2year=5100+255=5355$

And$,$

$Rs.1200$ paid $,$ So

Total money outstanding starting of Third year $=5355-1200$ $=Rs.4155$

Hence,

option $\left(A\right)$ is correct answer.