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    Question

    A man borrowed ₹10,000 at an interest rate of 12% per

    annum compounded annually. He repaid ₹4,000 at the end of the first year. What amount should he pay at the end of the second year to clear his debt?
    A ₹8,064 Correct Answer Incorrect Answer
    B ₹6,720 Correct Answer Incorrect Answer
    C ₹6,800 Correct Answer Incorrect Answer
    D ₹7,100 Correct Answer Incorrect Answer

    Solution

    Amount at the end of the first year = 10,000 × (1 + 12/100) = ₹11,200. Remaining principal after repaying ₹4,000 = ₹11,200 - ₹4,000 = ₹7,200. Amount at the end of the second year = 7,200 × (1 + 12/100) = ₹7,200 × 1.12 = ₹8,064. Correct option: a

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