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# Jaya Borrowed Rs. 50,000 for 2 Years. the Rates of Interest for Two Successive Years Are 12% and 15% Respectively. She Repays 33,000 at the End of the First Year. Find the Amount She Must Pay at the End of the Second Year to Clear Her Debt. - ICSE Class 10 - Mathematics

ConceptCompound Interest as a Repeated Simple Interest Computation with a Growing Principal

#### Question

Jaya borrowed Rs. 50,000 for 2 years. The rates of interest for two successive years are 12% and 15% respectively. She repays 33,000 at the end of the first year. Find the amount she must pay at the end of the second year to clear her debt.

#### Solution

For 1st year:

P = Rs. 50,000; R = 12% and T = 1 year

∴ Interest = Rs (50000 xx 12 xx 1)/100 = Rs. 6000

And, Amount = Rs. 50,000 + Rs. 6,000 = Rs. 56,000

Since Money repaid  = Rs. 33,000

∴ Balance = Rs. 56,000 - Rs. 33,000 = Rs. 23,000

For 2nd year:

P = Rs. 23000; R  = 15% and T = 1 year

∴ Interest = Rs (23000 xx 15 xx 1)/100= Rs 3450

And, Amount =  Rs. 23,000 + Rs. 3,450 =  Rs. 26,450

Thus, Jaya must pay Rs. 26,450 at the end of 2nd year to clear her debt

Is there an error in this question or solution?

#### APPEARS IN

2016-2017 (March) (with solutions)
Question 2.3 | 4.00 marks
Solution Jaya Borrowed Rs. 50,000 for 2 Years. the Rates of Interest for Two Successive Years Are 12% and 15% Respectively. She Repays 33,000 at the End of the First Year. Find the Amount She Must Pay at the End of the Second Year to Clear Her Debt. Concept: Compound Interest as a Repeated Simple Interest Computation with a Growing Principal.
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