11. A man borrows 10,000 at 10% compoundinterest compounded yearly. At

1.	11. A man borrows 10,000 at 10% compoundinterest compounded yearly. At the end ofeach year, he pays back 30% of the sumborrowed. How much money is left unpaidjust after the second year ?
Answer» For first year: P = 10000 R = 10% T = 1yr Interest = 1000 A = P + I = 10000 + 1000 = 11000 We know that he pays 20% of amount every year 20 / 100 x 11000 = 2200 So the total amount paid = 11000 - 2200 = 8800 For second year: P = 8800 R = 10% T = 1 yr Interest = 880 A = P+ I = 8800 + 800 = 9680 He pays 20% of amount again 20/100 x 9680 = 1936 Total amount paid = 9680 - 1936 = 7744 So the loan is 7744

11. A man borrows 10,000 at 10% compoundinterest compounded yearly. At the end ofeach year, he pays back 30% of the sumborrowed. How much money is left unpaidjust after the second year ?

Answer»

For first year:

P = 10000

R = 10%

T = 1yr

Interest = 1000

A = P + I = 10000 + 1000 = 11000

We know that he pays 20% of amount every year

20 / 100 x 11000 = 2200

So the total amount paid = 11000 - 2200 = 8800

For second year:

P = 8800

R = 10%

T = 1 yr

Interest = 880

A = P+ I = 8800 + 800 = 9680

He pays 20% of amount again

20/100 x 9680

= 1936

Total amount paid = 9680 - 1936 = 7744

So the loan is 7744