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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 |
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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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