a man borrows rs 12500 from a bank at 20 compound..., Compound Interest, General Mathematics

Question:A man borrows Rs. `12500` from a bank at `20%` compound interest. At the end of every year he pays Rs.`2000` as part repayment. How much does he still owe to the bank 
after three such instalments ?

A `Rs. 15600` 
B `Rs. 12864` 
C `Rs. 12000` 
D none of these

/44

+ AnswerD

+ ExplanationBalabce`= Rs.[12500 xx (1 + 20/100)^3]`

`=Rs.[2000 xx (1 + 20/100)^2 + 2000 xx (1 + 20/100) + 2000]`

`= Rs. [(12500 xx 6/5 xx 6/5 xx 6/5)] - [(2000 xx 6/5 xx 6/5 + 2000 xx 6/5 + 2000)]`

`= Rs. [21600 - (2880 + 2400 + 2000)]`

`= Rs. 14320`

+ Report

Descriptive on Compound Interest Ebook

Total Preview: 1015

Question:A man borrows Rs. `12500` from a bank at `20%` compound interest. At the end of every year he pays Rs.`2000` as part repayment. How much does he still owe to the bank after three such instalments ?

A `Rs. 15600`

B `Rs. 12864`

C `Rs. 12000`

D none of these

D