A) Rs. 21555
B) Rs. 20475
C) Rs. 20500
D) Rs. 20700
Correct Answer: C
Solution :
It will take 10 years for Jairam to pay off Rs. 10000 in 10 yearly installments. \[\because \] He pays 10% annual interest on remaining amount \[\therefore \] Money given in first year \[=1000+\frac{10000\times 10}{100}=\text{Rs}.2000\] Money given in second year = 1000 + interest of (10000 - 1000) with interest rate 10% per annum \[=1000+\frac{9000\times 10}{100}=\text{Rs}.\,1900\] Money paid in third year = Rs. 1800 etc. So money given by Jairam in 10 years will be Rs. 2000, Rs. 1900, Rs. 1800, Rs. 1700,...., which is in arithmetic progression, whose first term \[a=2000\]and \[d=-100\] Total money given in 10 years = sum of 10 terms of arithmetic progression \[=\frac{10}{2}[2(2000)+(10-1)(-100)]\]= Rs. 15500 Therefore, total money given by Jairam \[=5000+15500=\text{Rs}\text{. }\,\text{20500}\text{.}\]
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