Explanation:

To determine how much the man owes the bank after three instalments, let's calculate each year:

- Year 1:

- Initial loan: Rs. 50,000

- Interest for the year: 10% of Rs. 50,000 = Rs. 5,000

- Total amount owed by year-end: Rs. 50,000 + Rs. 5,000 = Rs. 55,000

- Payment made: Rs. 15,000

- Remaining balance: Rs. 55,000 - Rs. 15,000 = Rs. 40,000

- Year 2:

- Interest for the year: 10% of Rs. 40,000 = Rs. 4,000

- Total amount owed by year-end: Rs. 40,000 + Rs. 4,000 = Rs. 44,000

- Payment made: Rs. 15,000

- Remaining balance: Rs. 44,000 - Rs. 15,000 = Rs. 29,000

- Year 3:

- Interest for the year: 10% of Rs. 29,000 = Rs. 2,900

- Total amount owed by year-end: Rs. 29,000 + Rs. 2,900 = Rs. 31,900

- Payment made: Rs. 15,000

- Remaining balance: Rs. 31,900 - Rs. 15,000 = Rs. 16,900

- Option 1: Rs. 16,900 is the correct answer.

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