A person borrowed a sum of ₹30800 at 10% p.a. for 3 years, interest compounded annually. At the end of two years, he paid a sum of ₹13268. At the end of 3rd year, he paid ₹ x to clear of the debt. What is the value of x ?
Answer & explanation
Correct answer: option 1
Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t
Amount to be paid after 2 years = 30800 × ( 1 + \(\frac{10 }{100}\) )2
= 30800 × \(\frac{11 }{10}\) × \(\frac{11 }{10}\)
= 37268
Paid amount = 13268
Sum left = 37268 - 13268 = 24000
Now , Amount at the end of 3rd year = 24000 × ( 1 + \(\frac{10 }{100}\) )1
= 24000 × \(\frac{11 }{10}\)
= Rs.26400