1.

A person borrows Rs. 6000 from a co-operative bank at 8% compound interest. At the end of every year he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the co-operative bank after four such installments?1). Rs. 1403.7652). Rs. 2688.6723). Rs. 3878.44). Rs. 4980

Answer»

AMOUNT left after 1st installment = 6000(1 + (8/100)) – 1500 = 6480 – 1500 = 4980

Amount left to pay after 2nd installment = 4980(1 + (8/100)) – 1500 = 5378.4 – 1500 = 3878.4

Amount left to pay after 3rd installment = 3878.4(1 + (8/100)) – 1500 = 4188.672 – 1500 = 2688.672

Amount left to pay after 4th installment = 2688.672(1 + (8/100)) – 1500 = 2903.765 – 1500 = 1403.765

∴ Amount left to be paid = RS. 1403.765



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