Question

A man borrowed a sum of Rs. 4000 at 20%
per annum. He pays back Rs. 1500 at the
end of each year. Calculate how much
amount he will pay at the end of 3rd year
to clear all his dues if:

(1) Interest being Compound

(2) Interest being Simple​

Answer 1

Answer:

Solution(By Examveda Team)

Amount after 1st year = Rs. [4000(1+15100)−1500]=Rs. [(4000×2320)−1500]=Rs. (4600−1500)=Rs. 3100Amount after 2nd year = Rs. [3100(1+15100)−1500]=Rs. [(3100×2320)−1500]=Rs. (3565−1500)=Rs. 2065Amount after 3rd year = Rs. [2065(1+15100)−1500]=Rs. [(2065×2320)−1500]=Rs. (2374.75−1500)=Rs. 874.75