Question

A man borrowed Rs. $40,4000$ 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 certain amount and at the end of fifth year he paid back Rs. $95960$ 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

Answer: (B)

Rs. $17400$

For the first two years,
Amount $=40000+$ $\frac{40000\times 8\times 2}{100}$
$=40000+6400=$ Rs. $46400$
Let $x$ be the principal for the last $3$ years.
Then, $x+$ $\frac{x\times 8\times 3}{100}=35960$
$\Rightarrow x+\frac{6x}{25}=35960$

$\Rightarrow \frac{25x+6x}{25}=35960$
$\Rightarrow \frac{31x}{25}=35960$

$\Rightarrow x=\frac{35960\times 25}{31}=$ Rs. $29000$
$\therefore$ Amount paid back after the second year $=$ Rs. $46400-$ Rs. $29000=$ Rs.$17400$.