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Rajan Borrowed Rs 32,000 at 12% Compound Interest for 2 Years. at the End of the First Year He Returned Some Amount and on Paying Rs 17,920 at the End of the Second Year, - Mathematics

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Question

Rajan borrowed Rs 32,000 at 12% compound interest for 2 years. At the end of the first year he returned some amount and on paying Rs 17,920 at the end of the second year, he cleared the loan. Calculate the amount Rajan paid at the end of the first year.

Sum
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Solution

Interest for first year : 

S.I. = `("P" xx "r" xx "t")/100`

S.I. = `(32000 xx 12 xx 1)/100`

S.I. = 3,840 

Principal amount for second year = Rs (32,000 + 3,840) = Rs 35,840 

Rajan paid =Rs x (say) 

Therefore, new principal = Rs 35,840 - x 

A=Rs 17,920 ; r = 12% ; n= 1 year

`"A" = "P" (1 + "r"/100)^"n"`

Rs 17,920 = Rs (35,840 - x)`(1 + 12/100)`

Rs 17, 920 = Rs (35,840 - x ) × 1.12

Rs 17, 920 = Rs 40,140.80 - Rs1.12 x

1.12 x =Rs(40,140.80 - 17, 920) 

`"x" = ("Rs"  22220.80)/1.12`

x = Rs 19, 840 

Therefore, Amount Rajan paid at the end of first year = Rs 19,840 

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Chapter 1: Compound Interest - Exercise 1.5 [Page 15]

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Frank Mathematics - Part 2 [English] Class 10 ICSE
Chapter 1 Compound Interest
Exercise 1.5 | Q 2 | Page 15

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