CDS 2009 (II) Mathematics Q2

Q2.  A person borrowed Rs. 7500 at 16% compound interest. How much does he have to pay at the end of two years to clear the loan?

Soln:

At the end of first year he will have to pay = 7500*16% = Rs. 8,700.

At the end of second year he will have to pay = 8700*16% = Rs. 10,092.