ICSE Guess > ICSE/ISC eBooks > Class X > Maths by Mr. M. P. Keshari

ICSE / ISC eBooks

Example – 4. A man borrowed Rs.5000 at 12% C.I. per anum, interest payable every six months. He pays back Rs.1,800 at end of every six months. Calculate the third payment the he has to make at the end of 18 months in order to clear the entire loan.

Solution : P = Rs. 5000, R = 12% p.a. = 6% half yearly

Amount after 1st half year
= Rs. 5000 + Rs. 300
= 5300

Amount paid after 1st half year = Rs. 1800

Balance amount = Rs. 5300 – Rs. 1800
= Rs. 3500

Amount paid after 2nd half year = Rs. 1800
Balance amount = Rs. 3710 – Rs. 1800
= Rs. 1910

Amount at the end of 3rd half year
= Rs. 1910 + Rs. 114.60
= Rs. 2024.60