Question

Mr Kumar borrowed Rs. 15000 for two years. The rates of interest for two successive years are 8% and 10% respectively. If he repays Rs. 6200 at the end of the first year, find the outstanding amount at the end of the second year.

Answer 1

Here Principal, P = Rs. 15000

Rate of interest, R = 8% for first year and 10% for second year

Interest for 1st year = `(PxxRxxT)/100 = (15000 xx 8 xx 1)/100 = Rs 1200`

Amount at the end of first year = Rs. 15000 + 1200 = Rs. 16200

Kumar repays Rs. 6200 at the end of first year.

∴Principal for second year = Rs. 16200 – Rs. 6200 = Rs. 10000

Interest for second year = `(P xx R xx T)/100 = (10000 xx 10 xx 1)/100 = Rs 1000`

Amount at the end of second year = Rs. 10000 + Rs. 1000 = Rs. 11000