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A person bought a refrigerator worth Rs. 22,800 with 12.5% interest compounded yearly. At the end of first year he paid Rs. 8,650 and at the end of second year Rs. 9,125. How much will he have to pay at the end of third year to clear the debt?1. Rs. 9,9902. Rs. 10,0003. Rs. 10,5904. Rs. 11,250 |
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Answer» Correct Answer - Option 4 : Rs. 11,250 Given: Cost of the refrigerator = Rs.22, 800 Interest rate= 12.5 % Amount paid at the end of the first year = Rs.8,650 Amount paid at the end of the second year = Rs.9,125 Calculation: Cost of the refrigerator = Principal amount = Rs.22,800 Interest rate = 12.5% After first year, interest = 12.5 % of Rs.22, 800 = Rs.2850 Principal amount remaining = Original Principal amount + Interest of first year - Amount paid ⇒ 22800 + 2850 - 8650 ⇒ Rs.17000 After second year, interest = 12.5% of Rs.17,000 = Rs.2125 Principal amount remaining = Original Principal amount + Interest of second year - Amount paid ⇒ 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 ∴ Amount to be paid at the end of the third year is Rs.11, 250 |
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