A person takes a loan of Rs. 5000 at 5% simple interest. He returns Rs. 3000 at the end of one year. How much he would have to pay, in order to clear his dues, at the end of 2 years?

He must pay Rs. 2350.

SI on 5000 for 2 years at 5% = Rs. 500, so total due = Rs. 5500.

The Rs. 3000 repaid after 1 year earns 5% for the remaining year.

Its value after year 2 = 3000 x 1.05 = Rs. 3150.

Amount to clear = 5500 - 3150 = Rs. 2350.