Anu borrowed Rs.800 at rate of interest 10% . He repaid Rs.400 at the end of first year.What is the amount required to repay at the end of second year to discharge his loan which was calculated at compound interest?

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Solution

Amount paid at the end of 1 year = $800 (1 + \frac{10}{100})$
$= \frac{800 \times 110}{100}$
$= 880$
Amount left as principal for the second year
$= 888 - 400 = 480$
Amount to be paid after 2 nd year = $480 (1 + \frac{10}{100})$
$= 480 (\frac{110}{100})$
$= R s 528$

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Anu borrowed Rs.800 at rate of interest 10% . He repaid Rs.400 at the end of first year.What is the amount required to repay at the end of second year to discharge his loan which was calculated at compound interest?

Amount paid at the end of 1 year = 800(1+10100)=800×110100=880Amount left as principal for the second year=888−400=480Amount to be paid after 2 nd year = 480(1+10100)=480(110100)=Rs528

Amount paid at the end of 1 year = $800 (1 + \frac{10}{100})$
$= \frac{800 \times 110}{100}$
$= 880$
Amount left as principal for the second year
$= 888 - 400 = 480$
Amount to be paid after 2 nd year = $480 (1 + \frac{10}{100})$
$= 480 (\frac{110}{100})$
$= R s 528$