Question
A man borrows ₹12,000 at 10% per annum simple
interest for 5 years. He repays ₹6,000 at the end of 3 years. What amount should he repay at the end of 5 years to clear the loan?Solution
Interest for 3 years = ₹12,000 × 10% × 3 = ₹3,600. Total amount at the end of 3 years = ₹12,000 + ₹3,600 = ₹15,600. Amount after repaying ₹6,000 = ₹15,600 - ₹6,000 = ₹9,600. Interest on ₹9,600 for 2 years = ₹9,600 × 10% × 2 = ₹1,920. Total amount to repay = ₹9,600 + ₹1,920 = ₹11,520.
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