Question

A man borrowed Rs. $5000$ at $10\%$ per annum compound interest. At the end of each year he has repaid Rs. $1500$. The amount of money he still woes after the third year is

• A. Rs. $1600$
• B. Rs. $1690$
• C. Rs. $1700$
• D. Rs. $1790$

Answer 1

The correct option is B Rs. $1690$

Since the man repays Rs. $1500$ at the end of each year
$\therefore$ Amount he owes at the end of $1^{st}$ year
$=5000(1+\frac{10}{100})-1500=5500-1500=Rs.4000$
Amount he owes at the end of $2^{nd}$ year
$=4000(1+\frac{10}{100})-1500=4400-1500=Rs.2900$
Amount he owes at the end of $3^{rd}$ year
$=2900(1+\frac{10}{100})-1500=3190-1500=Rs.1690$