Mr. Chatterjee Borrowed Rs 50,000 in Compound Interest from Mr. Patel for 2 Years When the Rates of Interest for the Successive Years Were 7 1/2 % and 9 1/4 %. - Mathematics

Sum

Mr. Chatterjee borrowed Rs 50,000 in compound interest from Mr. Patel for 2 years when the rates of interest for the successive years were 7 1/2 % and 9 1/4 %. If Mr. Chatterjee returned Rs 27, 750 at the end of the first year, find the amount he needs to return at the end of the seoond year to clear the loan.

Solution

P = Rs. 50,000, R = 7 1/2 % p.a. = 15/2 % p.a.

Interest for first year

= ("Rs"  50000 xx 15/2 xx 1)/100

= ("Rs"  50000 xx 15 xx 1)/ (2 xx 100)

= Rs 3, 750

Amount due after 1st year

=Rs. 50,000 +Rs. 3,750 =Rs 53,750

Amount paid after 1st year = Rs. 27,7 50

Balance amount= Rs. 53,750 - Rs. 27,750 =Rs. 26,000

Interest for second year when r = 9 1/4 %p.a. = 37/4% p.a.

= ("Rs"  26000 xx 37/4 xx 1)/100

= ("Rs"  26000 xx 37 xx 1)/(4 xx 100)

= Rs 2, 405
Amount due after 2nd year

= Rs. 26,000 + Rs. 2,405 =Rs 28,405

Mr. Chatterjee has to return Rs 28,405 to Mr. Patel at the end of second year to clear his loan.

Is there an error in this question or solution?

APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 1 Compound Interest
Exercise 1.2 | Q 10 | Page 8