Savitri borrowed 10000 rupees from a bank for a period of two years at a fixed interest rate of 10% per annum, compounded semi-annually, and paid back 5025 rupees at the end of first year. Then, the amount, in rupees, to be paid at the end of second year is_________

Correct Answer: 6615

Principal Rs. 10000 at 10% p.a. compounded semi-annually, i.e., 5% per half-year.

End of 1st year: $$10000 \times 1.05^2 = 11025$$, then pay back 5025 → outstanding = 6000.

End of 2nd year: $$6000 \times 1.05^2 = 6615$$.

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