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# A man borrowed Rs.25000 from a bank at 20% compound interest. At the end of every year he paid Rs.8000. At the end of the third year, he wanted to clear t

A man borrowed Rs.25000 from a bank at 20% compound interest. At the end of every year he paid Rs.8000. At the end of the third year, he wanted to clear the loan. How much should he pay to clear the loan'?

• Option 1)

Rs.12400

• Option 2)

Rs.16040

• Option 3)

Rs.16000

• Option 4)

Rs.22080

• Option 5)

Rs.20800

Answers (1)
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After 1st year amount $= p \left [ 1+\frac{R}{100} \right ] = 30000$

After paid 8000 remaining amount $= 22000$

$After\: 2nd \: year= 22000\left [ 1+\frac{20}{100} \right ]= 26400$

$After\: paying \: 8000 = 26400-18400$
$After\: 3rd \: year\: amount = 18400 \left [ 1+\frac{R}{100} \right ]= 22080$

so clearing loan 22080 Rs. Was paid after 3rd year

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