A person borrows Rs. 16000 at the rate of 15% p.a. compounded annually. If he returns Rs. 4400, Rs. 5100 at the end of 1st year and 2nd year resp., then Find how much money he will return at the end of 3rd year to settle his loan.

Rs. 12650

For the 1st year: 

Rate of interest = 15% = \(\frac{3}{20}\)

P = 20  →  × 800  →  16,000

A = 20 + 3 = 23  →  × 800  →  18,400

At the end of 1st year, he has to pay = 18, 400

                                      Amount Paid =  4,400

                             Remaining amount = 14,000

For the 2nd year:  →  \(\frac{3}{20}\)

P = 20  →  × 700  →  14,000

A = 23  →  × 700  →  16,100

At the end of 2nd year, he has to pay = 16, 100

                                       Amount Paid = 5,100

                              Remaining amount = 11,000

Now,

For the 3rd year:  →  \(\frac{3}{20}\)

P = 20  →  × 550  →  11,000

A = 23  →  × 550  →  12,650

At the end of 3rd year, he has to pay Rs. 12,650 to settle his loan.