1.

A man borrows Rs. 5000 at 10% simple rate of interest. He pays back Rs. 1500 at the end of each year to clear his debt. The amount that he should pay to clear all his dues at the end of third year is1). Rs. 20002). Rs. 29003). Rs. 30604). Rs. 3190

Answer»

<P>We KNOW the formula for simple interest -

$(\Rightarrow \;S.I.\; = \frac{{P\; \times \;R\; \times \;T}}{{100}})$

SI = Simple interest

P = Principal

R = Rate of interest

T = Time period

P = Rs. 5000

Amount at the end of first year = 5000+(5000 × 10 × 1)/100 = Rs. 5500

Amount he paid back = Rs. 1500

For the second year:

P = 5500 – 1500 = Rs. 4000

Amount = 4000+(4000 × 10 × 1)/100 = Rs. 4400

For the third year

P = 4400 – 1500 = Rs. 2900

Amount payable at the end of third year = 2900+(2900 × 10 × 1)/100 = Rs. 3190



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