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Mr. Kumar Borrowed Rs. 15,000 for Two Years. the Rate of Interest for the Two Successive Years Are 8% and 10% Respectively. If He Repays Rs. 6,200 at the End of the First Year - Mathematics

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Question

Mr. Kumar borrowed Rs. 15,000 for two years. The rate of interest for the two successive years are 8% and 10% respectively. If he repays Rs. 6,200 at the end of the first year, find the outstanding amount at the end of the second year.

Sum
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Solution

P = ₹ 15,000
Interest for 1st year 
= `(15,000 xx 8 xx 1)/(100)`
= ₹ 1,200

Amount after one year
= ₹ (15,000 + 1,200)
= ₹ 16,200

He repays ₹ 6,200 at the end of the 1st year
∴ Principal for 2nd year
= ₹ (16,200 - 6,200)
= ₹ 10,000

Now interest for the 2nd year
= `(10,000 xx 10 xx 1)/(100)`
= ₹1,000

∴ Amount outstanding at the end of 2nd year
= ₹ (10,000 + 1,000)
= ₹ 11,000.

shaalaa.com
Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal
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