A man borrows Rs. 20,000 at 10% compound interest. At the end of every year he pays Rs. 2000 as part repayment. How much does he still owe after three such installments? Choose the correct choice from the following choices
A) Rs.24000 B) Rs.20000 C) Rs.15000 D) Rs.10000 E) Rs.13000
Explanation:   Amount after 3 years on Rs.20000 at 10% compound interest   = 20000(1 + 10/100)3 = 20000(11/10)3 = 26620--- (1)   He paid Rs.2000 after 1st year.   Hence Rs.2000 and its compound interest for 2 years (i.e., amount on 2000 after 2 year) need to be reduced from (1)   Similarly, he paid Rs.2000 after 2nd year.   Hence Rs.2000 and and its compound interest for 1 year   (i.e., amount on 2000 after 1 year) need to be reduced from (1)   Similarly, he paid Rs.2000 after 3rd year.   Hence this Rs.2000 also need to be reduced from (1)   Hence, remaining amount   = 26620 − 2000 (1+10/100)2 − 2000(1+10/100)1 − 2000   = 26620 − 2000(11/10)2 − 2000(11/10) − 2000   = 26620 −2420 − 2200 − 2000 = 20000   i.e, he still owes Rs.20000 even after three installments   Answer: Option Rs.20000
<result>B</result>
A man borrows Rs. 20,000 at 10% compound interest. At the end of every year he pays Rs. 2000 as part repayment. How much does he still owe after three such installments?