A man borrows 6000 at 5 compound interest If he repays 1200 at the end of each year find the amount ...

Question

A man borrows 6000 at 5 compound interest If he repays 1200 at the end of each year find the amount outstanding at the beginning of the third year

Accepted Answer

It is given that Principal 6000 Rate of interest 5 pa We know that Interest for the first year Prt100 Substituting the values 6000 5 1 100 300 So the amount after one year 6000 300 6300 Principal for the second year 6300 Amount paid 1200 So the balance 6300 1200 5100 Here Interest for the second year 5100 5 1 100 255 Amount for the second year 5100 255 5355 Amount paid 1200 So the balance 5355 1200 4155

ML Aggarwal Solutions Class 9 Mathematics Solutions for Compound Interest Exercise 2.1 in Chapter 2 - Compound Interest