Question

Some amount was lent at 10% p.a.., and after 1 year ₹4400 is repaid and the rest of the amount is repaid at 20% per annum if the second years interest is 11 by 7 of the first years interest find the amount of money that was lent out initially​

Answer 1

To find the initial amount lent, set up equations based on the 10% interest in the first year and the 20% interest in the second year. Use the given ratio of second-year interest to first-year interest to solve for the initial principal.

Step-by-step explanation:

The student's question pertains to finding the initial amount of money lent out, given certain information about interest rates and repayments over two years. To solve this, we can set up equations based on the data provided about the loan and interest accrued.

Let's assume the initial amount lent out is P. In the first year, at a 10% per annum interest rate, the interest for the first year would be 0.10P. After repayment of ₹4400, the remaining amount would be P - ₹4400.

In the second year, the remaining amount is subjected to a 20% per annum interest rate. The interest for the second year would be 0.20(P - ₹4400).

According to the question, the second year's interest is 11/7 of the first year's interest, which gives us the equation 0.20(P - ₹4400) = (11/7)(0.10P). Solving this equation will yield the initial amount P.