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A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him?
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A person borrows some money from the bank at 10% per annum compounded ...
Given:
- Rate of interest per annum = 10%
- Time period = 2 years
- Amount paid after each year = Rs.3,630
To Find:
- The amount borrowed by the person.
Solution:
Let's assume that the amount borrowed by the person is 'P' rupees.
Year 1:
- At the end of the first year, the amount borrowed will grow with an interest of 10%.
- Therefore, the amount at the end of the first year will be: P + (10/100)P = P + 0.1P = 1.1P
- The person pays Rs.3,630 at the end of the first year. Therefore, the remaining amount after the first payment will be: 1.1P - Rs.3,630.
Year 2:
- At the end of the second year, the amount remaining after the first payment will grow with an interest of 10%.
- Therefore, the amount at the end of the second year will be: (1.1P - Rs.3,630) + (10/100)(1.1P - Rs.3,630) = (1.1P - Rs.3,630) + 0.11P - Rs.363
- Simplifying, we get: 1.21P - Rs.3,993.3
Since the person has completely paid off the borrowed amount after the second year, the remaining amount at the end of the second year should be zero.
Therefore, we can write the equation as follows:
1.21P - Rs.3,993.3 = 0
Solving this equation, we can find the value of P.
Calculations:
1.21P - Rs.3,993.3 = 0
1.21P = Rs.3,993.3
P = Rs.3,993.3 / 1.21
P ≈ Rs.3,300
Conclusion:
The amount borrowed by the person is approximately Rs.3,300.
- Rate of interest per annum = 10%
- Time period = 2 years
- Amount paid after each year = Rs.3,630
To Find:
- The amount borrowed by the person.
Solution:
Let's assume that the amount borrowed by the person is 'P' rupees.
Year 1:
- At the end of the first year, the amount borrowed will grow with an interest of 10%.
- Therefore, the amount at the end of the first year will be: P + (10/100)P = P + 0.1P = 1.1P
- The person pays Rs.3,630 at the end of the first year. Therefore, the remaining amount after the first payment will be: 1.1P - Rs.3,630.
Year 2:
- At the end of the second year, the amount remaining after the first payment will grow with an interest of 10%.
- Therefore, the amount at the end of the second year will be: (1.1P - Rs.3,630) + (10/100)(1.1P - Rs.3,630) = (1.1P - Rs.3,630) + 0.11P - Rs.363
- Simplifying, we get: 1.21P - Rs.3,993.3
Since the person has completely paid off the borrowed amount after the second year, the remaining amount at the end of the second year should be zero.
Therefore, we can write the equation as follows:
1.21P - Rs.3,993.3 = 0
Solving this equation, we can find the value of P.
Calculations:
1.21P - Rs.3,993.3 = 0
1.21P = Rs.3,993.3
P = Rs.3,993.3 / 1.21
P ≈ Rs.3,300
Conclusion:
The amount borrowed by the person is approximately Rs.3,300.
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A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him?
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A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him?.
A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person borrows some money from the bank at 10% per annum compounded annually for two years. If after each year he pays Rs.3,630, then find the amount borrowed by him?.
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