Question

Digvijay takes a loan of ₹25,000 at an annual compound interest rate of 10%. He repays ₹4,000 at the end of each year. How much should he pay at the end of the third year to settle the remaining debt?

Q: Answer-Digvijay takes a loan of ₹25,000 at an annual compound interest rate of 10%. He repays ₹4,000 at the...

Amount after 10 compound interest 25000 2500 27,500 At the end of the first year he pays back 4000. Next year Principal will be 27,500 4000 23,500 Amount after 10 compound interest 23500 2350 25,850 At the end of the second year he pays back 4000, next year Principal will be 25,850 4000 21850 At the end of third year, Amount after 10 compound interest 21850 2185 24,035 So, he had to pay Rs. 24,035 at the end of third year to clear his debt.