AMOUNT The total money which the borrower pays back to the lender at the end of the specified period is called the amount.

The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as

INTEREST The additional money paid by the borrower to the lender for having used his money is called the interest.

Amit borrowed 20,000 at 12% per annum compound interest. If he pays 40% of the sum borrowed at the end of the first year and 40% of the sum borrowed at the end of the second year, find the amount of loan outstanding at the beginning of the third year.

Ashish borrowed a sum of money from a nationalised bank at 12% simple interest per annum and the same amount at 10% simple interest per annum both for the same period. He cleared the first loan 6 months before the scheduled date of repayment and repaid the second loan just at the end of the scheduled period. If in each case he had to pay Rs 3250 as amount then how much and for what time did he borrow?

Pramod borrowed 60,000 at 12% per annum compound interest. If he pays 50% of the sum borrowed at the end of the first year and 50% of the remaining loan at the end of the second year, find the amount of loan outstanding at the beginning of the third year.