NumericalHard4 marks
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.
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
Principal borrowed = ₹50,000.
First year at 12%: Interest = 50,000 × 12/100 = ₹6,000.
Amount after first year = 50,000 + 6,000 = ₹56,000.
Repayment = ₹33,000.
Outstanding = 56,000 − 33,000 = ₹23,000.
Second year at 15%: Interest = 23,000 × 15/100 = ₹3,450.
Amount to be paid = 23,000 + 3,450 = ₹26,450.
Answer: ₹26,450.
Explanation
The rate changes after the first year and the repayment reduces the principal. Calculate each year's interest separately.
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