#### 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 1^{st} 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 2^{nd} 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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