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
Principal amount = Rs.22,800
Interest rate = 12.5%
After first year, interest = Rs.2850
So, principal = 22800 + 2850 - 8650 = Rs.17000
After second year, interest = 12.5% of Rs.17,000 = Rs.2125
So, principal = 17000 + 2125 - 9125 = Rs. 10,000
After third year, interest = 12.5% of Rs.10,000 = Rs.1250
Amount to be paid too clear the debt = 10000 + 1250 = Rs.11,250
The correct option is D.