Q 69. Simple and Compound Interest
A person bought a refrigerator worth ₹22,800 with 12.5% interest compounded yearly. At the end of first year he paid ₹8,650 and at the end of second year ₹9,125. How much will he have to pay at the end of third year to clear the debt?
a)
₹9,990
b)
₹10,000
c)
₹10,590
d)
₹11,250
Answer:
d
- Principal amount = Rs.22,800
- Interest rate = 12.5%
- After first year, interest = Rs.2850
- So, principal = 22800 + 2850 - 8650 = Rs.17000
- After second year, interest = 12.5% of Rs.17,000 = Rs.2125
- So, principal = 17000 + 2125 - 9125 = Rs. 10,000
- After third year, interest = 12.5% of Rs.10,000 = Rs.1250
- Amount to be paid too clear the debt = 10000 + 1250 = Rs.11,250