Question

A man borrows Rs 18000 at 5% per annum compound interest .If he repays Rs 6000 at the end of the first year and Rs8000
at the end of the second year; how much should he pay at the end of the 3rd year in order to clear the account?

Answer 1

\[A_{1}=18000(1+0.05)-6000\]
\[A_{2}=[18000(1.05)](1.05)-8000\]
\[A_{3}=18000(1.05)^2-p\]

Answer 2

Oops the second installment meant o have -6000 inside the brackets

Answer 3

\[A_{2}=[18000(1.05)-6000](1.05)−8000\]

Answer 4

A_{3}=[18000(1.05)^2-6000(1.05)-8000](1.05)-p.

Answer 5

\[A_{3}=[18000(1.05)^2-6000(1.05)-8000](1.05)-p\]

Answer 6

A1=18000(1+0.05)−6000
A2=[18000(1.05)−6000](1.05)−8000
A3=[18000(1.05)2−6000(1.05)−8000](1.05)−p

Answer 7

Is the answer $5822.25?

Answer 8

yup..how do u got it

Answer 9

Find p. Don't worry about A3 that's just to tell you what year or installment it is.

Answer 10

Just ignore the A3 and pretend it was zero. Now just find p.

Answer 11

i didn't get ..if i ignore A3 then how would i find p

Answer 12

\[[18000(1.05)^2−6000(1.05)−8000](1.05)=5822.25\]
\[18000(1.05)^3-6000(1.05)^2-8000(1.05)=5822.25\]
Just expand the brackets.

Answer 13

Plug that into your calculator and you will get the answer.