Given, P = ₹60,000 and R = 12
For the first year:
I = PTR100
= 60,000×1×12100
= ₹7,200
Given that he pays off 50% of the amount borrowed.
Hence amount paid back by him
= 50% of 60,000
= ₹30,000
For the second year:
Principal = 30,000 + 7,200
= ₹37,200
I = PTR100
= 37200×1×12100
= ₹4,464
Actual amount due at the beginning of the third year
= 37,200 + 4,464
= ₹41,664
Given that he pays off 50% of the remaining borrowed sum.
50% of 30,000 = ₹15,000
Hence the total amount due at the beginning of the third year
= 41,664 - 15,000
= ₹26,664