Question
A borrows Rs 8000 from B at 10% p.a
compound interest compounded annually. At the end of every year he pays Rs 3000 and at the end of 3rd years he pays all the amount, how much amount does he pay at the end of the 3rd year?Solution
At the end of the 1st year: Amount = 8000 × 110% = Rs. 8800 Rest amount = 8800 – 3000 = Rs. 5800 At the end of 2nd year: Amount = 5800 × 110% = Rs. 6380 Rest amount = 6380 – 3000 = Rs. 3380 At the end of 3rd year: Amount = 3380 × 110% = Rs. 3718
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