Question
A person borrows Rs 400 at 5% compound interest per
annum. If he returns Rs 200 after one year, then how many more rupees will he have to pay at the end of 2 years?Solution
P =400, r = 5% Amount after one year = P + interest = 400+400×5/100= 420 Rs Remain after returns 100 Rs = 420-200=220 Rs And pay at the end of the 2 years =220+ 220×5/100 =220+11=231Rs
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