varun took out a loan of Rs.2500 from a bank which charges 11% interest compounded annually He paid back Rs.10000 after 2 years . how much should pay after one more year to settle the loan ?
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p = 25000
r =11%
n =2
A =p(1+ r)ⁿ
=25000(1+11%)² = 30802.5
after 2 years he has to pay 30802.5, but he paid only 10000
the amount he has to pay after 2 years
= 30802.5 - 10000 = 20802.5
this will be the new principal
p= 20802.5, n=1year, r=11%
A =p(1+r)ⁿ
= 20802.5(1+.11)¹ =23090.775
after 1 year he should pay 23090.775/-