Question

A man borrows Rs. 4,000 at 20% compound rate of interest. At the end of each year he pays
back Rs. 1,500. How much amount should he pay at the end of the third year to clear all his
dues?
(A) Rs. 2,952 (B) Rs. 2,852 (C) Rs. 2,592 (D) Rs. 2,953

Answer 1

Here is your answer in the attachment
Hope it helps you

Answer 2

Answer:

The correct answer is Option (A). Rs. 2,952

Step-by-step explanation:

Formula:-

Compound interest

$A=P[1+\frac{R}{100}]^{N}$

A - Amount

P - Principle amount

R - Rate of interest

N - Number of years

To find the amount after 1 year

P = 4,000,  R = 20% N = 1

$A=P[1+\frac{R}{100}]^{N}$

$A=4000[1+\frac{20}{100}]^{1}$

A = 4800

To find the amount after 2 year

he pays back Rs. 1,500

Here P = 4800 - 1500 = 3,300

$A=P[1+\frac{R}{100}]^{N}$

$A=3300[1+\frac{20}{100}]^{1}$

A =3960

To find the amount after 3 year

he pays back Rs. 1,500

Here P =  3,300 - 1500 = 2460

$A=P[1+\frac{R}{100}]^{N}$

$A=2460[1+\frac{20}{100}]^{1}$

A =2952

Therefore, the amount should he pay at the end of the third year to clear all his dues = Rs. 2952

The correct answer is Option (A). Rs. 2,952