Ravi borrows a sum of Rs. 64,000 at 5% p.a. compounded annually. At the end of one year, he repays a certain amount and he repays the balance amount of Rs. 35,700 at the end of the second year. What amount did he repay at the end of the first year?

TITA type i.e. Type In The Answer type

33200

Compound interest of the first year = 5% of 64,000 = 3,200

Amount at end of 1st year = 64,000 + 3,200 = 67,200.

Suppose amount repaid at end of first year is x, the principal for second year will be (67,200 – x)

And amount at end of 2nd year will be (67,200 – x) × 1.05

This is given to us as 35,700

$$
\begin{aligned}
& (67200-X) \times 1.05=35700 \\
& \Rightarrow 67200-X=34000 \\
& \therefore X=33200
\end{aligned}
$$