Question

Kanti borrows ₹ 100000 from a bank at 8% per annum compounded yearly. He repays ₹ 38000 at the end of first year and ₹ 35600 at the end of second year. Find the remaining amount at the end of third year.

Answer 1

Given:

• Principal (P) = ₹ 100,000
• Rate of interest (R) = 8% per annum compounded yearly
• Repayment at end of first year = ₹ 38,000
• Repayment at end of second year = ₹ 35,600
• Find remaining amount at the end of third year

Step-wise calculation:

At the end of first year:

Amount after 1 year = `P xx (1 + R/100)`

= `100,000 xx (1 + 8/100)`

= 100,000 × 1.08

= ₹ 108,000

After repayment of ₹ 38,000,

The balance = 108,000 – 38,000 = ₹ 70,000

At the end of second year:

New principal = ₹ 70,000

Amount after 2nd year = 70,000 × 1.08 = ₹ 75,600

After repayment of ₹ 35,600,

The balance = 75,600 – 35,600 = ₹ 40,000

At the end of third year:

New principal = ₹ 40,000

Amount after 3rd year = 40,000 × 1.08 = ₹ 43,200