Question
A man borrows Rs. 12,500 at 20% compound interest At he end of every year he pays Rs. 2000 as per part repayment .How much does he still owe after three such instalments ?
Answer: Option D
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Balance = Rs.` [{12500 xx (1 + 20/100)^3} - {2000 xx (1 + 20/100)^2 + 2000 xx (1 + 20/100) + 2000}]`
=` [(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
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