Multiple choice

A man borrows Rs. 10,000 at 10% compound interest compounded yearly. At the end of each year, he pays back 30% of the sum borrowed. How much money is left unpaid just after the second year?

  1. $Rs. 6,389$
  2. $Rs. 5,800$
  3. $Rs. 5,103$
  4. $Rs. 4,369$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Initial: 10000. Year 1: Interest = 1000. Total = 11000. Payment = 3000. Remaining = 8000. Year 2: Interest = 800. Total = 8800. Payment = 3000. Remaining = 5800.

AI explanation

The amount due at the end of the first year is 110% of 10,000, which equals Rs. 11,000, and he repays 30% of the original borrowed sum, meaning he pays Rs. 3,000. This leaves an outstanding principal of 11,000 - 3,000 = Rs. 8,000 for the second year. Applying the 10% interest to this balance gives a new total of 8,800, and after paying another 30% of 10,000, which is Rs. 3,000, the unpaid balance is 8,800 - 3,000 = Rs. 5,800.

Keep practicing — related questions