Question

A man borrowed Rs 40,000 at 8% simple interest per year. At the end of second year he paid back certain amount and at the end of fifth year he paid back Rs 35960 and cleared the debt. What is the amount that he paid back after the second year ?

(a) Rs 16200 

(b) Rs 17400 

(c) Rs 18600 

(d) Rs 19200

Answer 1

(b) Rs 17400.

For the first two years, 

Amount = 40000 + \(\frac{40000\times8\times2}{100}\)

= 40000 + 6400 = Rs 46400

Let x be the principal for the last 3 years.

Then, \(x\) + \(\frac{x\times8\times3}{100}\) = 35960

⇒ \(x+\frac{6x}{25}\) = 35960 ⇒ \(\frac{25x\,+\,6x}{25}=35960\)

⇒ \(\frac{31x}{25} = 35960\) ⇒ \(x\) = \(\frac{35960\times25}{31}\) Rs 29000

 ∴ Amount paid back after the Second year 

= Rs 46400 – Rs 29000 = Rs 17400.