A person bought a refrigerator worth Rs. 22,800 with 12.5% interest compounded yearly. At the end of first year he paid Rs. 8,650 and at the end of second year Rs. 9,125. How much will he have to pay at the end of third year to clear the debt?
Rs. 9,990
Rs. 10,000
Rs. 10,590
Rs. 11,250
Total interets in first year is 12.5% of 22800 = Rs. 2850. Debt at end of first year is Rs. 22800 + 2850 = Rs. 25650. After paying 8650, new principle is Rs. 17000. Now, 12.5% of that is 2125 So, debt at end of second year = 19125. So, he is left with debt Rs. 10000 + 12.5% of 10,000 i.e. total Rs. 11,250
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