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A moneylender takes advantage of difficult situation of poor people and charges 50% interest. However he never gets caught because he gives 20% of his total capital (initial capital + profit) as bribe. If in the beginning of 4th year, he has a capital of Rs 25,000 to invest, how much bribe did he give at the end of the second year?
Rs 4,900
Rs 5,200
Rs 5,000
Rs 6,000
Let the moneylender has Rs 100 initially. 1st year ---> 100 + 50 (interest) ---> 150 – 20% bribe ---> 120 2nd year ---> 120 + 60 (interest) ---> 180 – 20% bribe ---> 144 3rd year ---> 144 + 72 (interest) ---> 216 – 20% bribe ---> 172.8 (This is the capital he will have at the beginning of 4th year) So, if 172.8 --> 25,000 => 36 (bribe given in 2nd year) = (25000/172.8) ∗ 36 which on simplifying becomes 25000/4.8. Thus greater than 5000 but less than 6000. So, he gave Rs.5200 as bribe at the end of the second year.
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Tejas Rajpure
Where did 36 come from ?
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