# 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