Jaya borrowed ₹ 50000 for 2 years.

Jaya borrowed ₹ 50000 for 2 years. The rates of interest for two successive years are 12% and 15% respectively. She repays ₹ 33000 at the end of first year. Find the amount she must pay at the end of second year to clear her debt.

Solution:

It is given that
Amount borrowed by Jaya = ₹ 50000
Period (n) = 2 years
Rate of interest for two successive years are 12% and 15% respectively
We know that
Interest for the first year = Prt/100
Substituting the values
= (50000 × 12 × 1)/ 100
= ₹ 6000
So the amount after first year = 50000 + 6000 = ₹ 56000
Amount repaid = ₹ 33000
Here
Balance amount for the second year = 56000 – 33000 = ₹ 23000
Rate = 15%
So the interest for the second year = (230000 × 15 × 1)/ 100
= ₹ 3450
Amount paid after second year = 23000 + 3450 = ₹ 26450

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