wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Mr. Dubey borrows Rs. 100000 from state Bank of India at 11% per annum compound interest. He repays Rs. 41000 at the end of first year and Rs. 47700 at the end of second year. Find the amount outstanding at the beginning of the third year in Rs.

Open in App
Solution

P=100000 , R=11%
At the end of 1 year
Interest =PRT100=100000×11×1100=11000
Amount =P+I=111000
Repaid Amount =41000
Outstanding after 1 year =11100041000=70000
Since it is Compound Interest, Principle will be Outstanding (or amount) of previous year,
P=70000
I=PRT100=70000×11×1100=7700
A=77700
RA=47700
Therefore Outstanding at start of 3 year=7770047700=30000

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Simple and Compound Interest
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon