00:01
Hi, in this question given that the loan amount equals thousand to be paid in 30 years.
00:16
Here, given that for first 10 years, the payment is equal to interest due.
00:42
Therefore, there is no change in principal amount.
00:56
Next here given that the rate of interest or equals 10 percentage so next he had given that the year 11 interest due equals 10 % of thousand which is equal to 10 divided by 100 into thousand which is equal to 100 which is equal to 100 here given that the interest due is equal to 150 percent of 100.
01:38
So we have to find 150 percent of 100, which is equal to 150 divided by 100 into 100, which is equal to 150.
01:49
Hence, we conclude that 100 goes into interest and 50 reduce in principle.
02:09
Next we move on to for second year.
02:18
Second year, the principal amount, that is p equals thousand minus 50.
02:25
Because in the first year, we reduce the principle by 50.
02:30
So which is equal to 950...