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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. - Mathematics

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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?
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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. Concept: Concept of Compound Interest - Compound Interest as a Repeated Simple Interest Computation with a Growing Principal.
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