Final answer:
Jack's amount after 3 years is ₹21,240. His remaining loan amount at the end of 3 years is ₹8,000. The interest he pays for the last two years is ₹960. The amount he pays at the end of 5 years is ₹8,960. The total interest he pays is ₹4,200. If he wanted to pay after 5 years, he would have to pay ₹8,960 more to clear off the debt.
Step-by-step explanation:
To calculate the amount after 3 years, we can use the formula for simple interest:
Amount = Principal + (Principal × Rate × Time)
where Principal is ₹18,000, Rate is 6%, and Time is 3 years.
Using the formula, we get: Amount = ₹18,000 + (₹18,000 × 0.06 × 3) = ₹18,000 + ₹3,240 = ₹21,240.
To calculate the remaining loan amount at the end of 3 years, we subtract the amount paid back from the original loan amount:
Remaining Loan Amount = Original Loan Amount - Amount Paid Back
Remaining Loan Amount = ₹18,000 - ₹10,000 = ₹8,000.
To calculate the interest he pays for the last two years, we can use the formula for simple interest:
Interest = Principal × Rate × Time
where Principal is ₹8,000, Rate is 6%, and Time is 2 years.
Using the formula, we get: Interest = ₹8,000 × 0.06 × 2 = ₹960.
The amount he pays at the end of 5 years is the remaining loan amount plus the interest for the last two years:
Amount = Remaining Loan Amount + Interest = ₹8,000 + ₹960 = ₹8,960.
To calculate the total interest he pays, we add up the interest he paid at the end of 3 years and the interest he pays for the last two years:
Total Interest = Interest after 3 years + Interest for last two years = ₹3,240 + ₹960 = ₹4,200.
If he wanted to pay after 5 years, he would have to pay the remaining loan amount plus the interest for the last two years: Amount = Remaining Loan Amount + Interest = ₹8,000 + ₹960 = ₹8,960.