Kamal borrowed  Rs 15,000 for two years. The rate of interest for two successive years is 8% and 10% respectively. If he repays  Rs 6200 at the end of the first year, find the outstanding amount at the end of the second year.

The correct answer is: 11000 Rupees

SOLUTION:
HINT: Find the total amount at first year, then subtract the repaid amount and then find the amount
to be paid at the end of second year.
Complete step by step solution:
For first year,
Let the money borrowed by Kamal be the principal amount, P₁ = 15000 Rupees
Here we have rate of interest R = 8% number of years T = 1
We know that 
So, total amount after one year = 
 Rupees.
Money repaid at the end of first year = 6200 Rupees.
∴ Balance = 16200 - 6200 = 10000 Rupees.
For second year,
The principal amount becomes P₂ = 10000 Rupees.
Here we have rate of interest R = 10% number of years T = 1
We know that 
So. total amount after second year = 
 Rupees.
Hence the amount to be paid at the end of second year = 11000 Rupees.