Hi,
The question was intended to ask the additional amount required to pay at the end of three years.

Please check the modified solution and let us know if the doubt still persists.

thank you

Hi,
Please let me know if you have any other queries.

This is a great approach to answer and i also got confused but in the question it says each year 1500 is paid in the end so x= 2374.75 and then we subtract 1500 to get Rs 874.75.

Hi Anshika,
The question was intended to ask the additional amount required to pay at the end of three years.

Please check the modified solution and let us know if the doubt still persists.

Ohhhh I got jt now. Thank you so much

Hi,
Please let me know if you have any other queries.

Hi,
The question was intended to ask the additional amount required to pay at the end of three years.

Please check the modified solution and let us know if the doubt still persists.

Hi,
The question was intended to ask the additional amount required to pay at the end of three years.

Please check the modified solution and let us know if the doubt still persists.

Hi Rudrasish,
The equation can be solved with this approach also. 4000*(1.15)^3 = 1500*(1.15)^2 + 1500(1.15) + X.

After solving this, you will get X = 2374.75 rupees, which implies the additional amount he needs to pay is (2374.75-1500) =  874.75 rupees.
I hope this helps!

Hi Amey,
We are reducing the amount paid from the principal amount in this question. The amount of 4000 compounds to 4600 after one year, and 1500 paid is removed from this, making the principal for the second year to be 3100 instead of 4600. Similarly, we have calculated the principal after the second year. Since we are reducing the principal after the year based on the amount paid, there is no need to decrease the interest on the amount paid again.
Hope this helps!