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Ramesh Borrowed Rs 12,000 at 15% Compound Interest for 2 Years. at the End of the First Year He Returned Some Amount and on Paying Rs 9,200 at the End of the Second Year, He Cleared the Loan. - Mathematics

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Question

Ramesh borrowed Rs 12,000 at 15% compound interest for 2 years. At the end of the first year he returned some amount and on paying Rs 9,200 at the end of the second year, he cleared the loan. Calculate the amount of money Ramesh returned 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. = `(12000 xx 15 xx 1)/100`

S.l. = 1800

Principal amount for second year = Rs ( 12,000 + 1800) = Rs 13,800 

Ramesh paid =Rs x (say) 

Therefore, new principal = Rs 13,800 - x 

A=Rs 9 200 ; r = 15 % ;  n = 1 year 

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

Rs 9,200 = Rs (13,800 - x)`(1 + 15/100)`

Rs 9 ,200 = Rs (13, 800- x) × 1.15

Rs 9,200 = Rs 15, 870 - Rs 1.15 x

1.15 x = Rs (15870 - 9,200) 

`"x" = "Rs"  6670/1.15`

x = Rs 5, 800 

Therefore, Amount Ramesh paid at the end of first year = Rs 5,800 

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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 1 | Page 15
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