9. A man borrows* 1500 at 3% per annum and pays back 500 after 3 years. How much
does he still owe (including interest?
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Amount of one year
=200[1+
100
5
]
=200×
20
21
=210
∴ At the end of year he pays back Rs. 50. So the principal for the second year is Rs. 160.
∴ Amount of Second year
=160[1+
100
5
]
=160×
20
21
=168
∴ At the end of year he pays back Rs. 50.
So rest amount = 168 -50 = Rs. 118.
This amount is principal amount for third year.
∴ Amount of third year
=118[1+
100
5
]
=118×
20
21
=123.90
At the end of years he pays back Rs. 50.
So rest amount
=123.90−50=Rs.73.90
This amount is principal for fourth year.
∴ Amount of fourth year
=73.90[1+
100
5
]
=73.90×
20
21
=77.59
At the end of year he pays back Rs. 50.
So rest amount
=77.595−50=Rs.27.59
∴ At the end of fourth year he owes Rs. 27.59.
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