A moneylender takes advantage of difficult situation of poor people and…

Step-by-Step Solution

To find the bribe paid at the end of the second year, we need to track the capital growth and bribe deduction year by year.

1. Understand the annual process:

   • Each year, the capital grows by 50% (interest).

   • After interest is added, 20% of the total amount (Initial Capital + Interest) is paid as a bribe.

   • This means the moneylender retains 80% of the total after interest.

2. Work backwards from the 4th year:

   • At the beginning of the 4th year, the capital is Rs. 25,000.

   • This amount is what remained at the end of the 3rd year after the bribe was paid.

   • Let X be the capital at the end of the 3rd year before the bribe.

   • 80% of X = 25,000. So, X = 25,000 / 0.8 = 31,250.

   • This X (31,250) is the capital at the end of the 3rd year after 50% interest was added.

   • Capital at the beginning of the 3rd year = 31,250 / 1.5 = 20,833.33.

3. Work forwards to find the bribe at the end of the 2nd year:

   • Let C1 be the capital at the beginning of the 1st year.

   • At end of 1st year (after bribe): C1 * 1.5 * 0.8 = C1 * 1.2

   • At end of 2nd year (after bribe): (C1 * 1.2) * 1.2 = C1 * 1.44

   • At end of 3rd year (after bribe): (C1 * 1.44) * 1.2 = 25,000

   • C1 * 1.728 = 25,000

   • C1 = 25,000 / 1.728 = 14,467.59

4. Calculate specific values:

   • Capital at beginning of 2nd year = C1 * 1.2 = 17,361.11

   • Capital at end of 2nd year (before bribe) = 17,361.11 * 1.5 = 26,041.67

   • Bribe at end of 2nd year = 20% of 26,041.67 = Rs. 5,208.33 (approximately Rs. 5,200).