A man borrows Rs.10000 at 5% per annum compound interest. He repays 35% of the sum borrowed at the end of the first year and 42% of the sum borrowed at the end of second year. How much must he pay at the end of the third year in order to clear the debt ?

Asked by nikhilbonde09 | 9th Jul, 2017, 01:43: PM

Expert Answer:

begin mathsize 16px style After space 3 space years space the space amount space to space be space paid
equals 10000 open parentheses 1 plus 5 over 100 close parentheses cubed
equals 10000 open parentheses 21 over 20 close parentheses cubed
equals Rs.11576.25
Given space that space at space the space end space of space the space first space year space he space paid space 35 percent sign space of space the space amount.
That space is comma space 35 over 100 cross times 10000 equals Rs.3500
Given space that space at space the space end space of space the space second space year space he space paid space 35 percent sign space of space the space amount.
That space is comma space 42 over 100 cross times 10000 equals Rs.4200
So comma space the space total space amount space paid space equals Rs.3500 plus Rs.4200 equals Rs.7700
Amount space left space to space be space paid equals Rs.11576.25 minus Rs.7700 equals Rs. space 3876.25
Hence comma space he space should space pay space Rs. space 3876.25 space at space the space end space of space the space third space year space in space order
to space clear space his space debt. end style

Answered by Rebecca | 10th Jul, 2017, 03:30: AM