Thomas took out a loan of 15000 rupees from a bank which charges 12% interest, compounded annually. After 2 years, he paid back 10000 rupees. To settle the loan, how much should he pay at the end of three years?

This Problem is quite similar to the previous one, we will use the same Formula as we used in the previous one.

Balance after completing 1 years=Balance in the starting + interest after 1 years

For calculating Interest =

First Year’s balance= 15000Rs

First Year’ Interest =

= 1800

Now, balance after the first year = First Year’s balance +First Year’s Interest

= 15000+1800

= 16800Rs

Second Year’s Balance= 16800Rs

Second Year’s Interest=

= 2016Rs

Balance after the second year = Second Year’s Balance + Second Year’s Interest

= 16800+2016

= 18816Rs After Paying back 10000, Remaining Balance= 18816-10000

= 8816

Interest on remaining balance =

= 1057.2

Amount Required to settle down the load= 8816+1057.

= 9873.2Rs