Question

7.) A farmer takes a loan of 8400 at the simple interest rate of 7=% per annum. After what time will he have to pay 10 920 to clear the debt?
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Answer 1

Question :- ᴀ ғᴀʀᴍᴇʀ ᴛᴀᴋᴇs ᴀ ʟᴏᴀɴ ᴏғ ʀʀ. 8400 ᴀᴛ ᴀ sɪᴍᴘʟᴇ ɪɴᴛᴇʀᴇsᴛ ʀᴀᴛᴇ ᴏғ 7.5%. ᴀғᴛᴇʀ ᴡʜᴀᴛ ᴀᴍᴏᴜɴᴛ ᴏғ ᴛɪᴍᴇ ᴡɪʟʟ ʜᴇ ʜᴀᴠᴇ ᴛᴏ ᴘᴀʏ ʀs. 10,920 ᴛᴏ ᴄʟᴇᴀʀ ᴛʜᴇ ᴅᴇʙᴛ?

Answer :- ᴛʜᴇ ᴀɴsᴡᴇʀ ɪs ᴀғᴛᴇʀ 4 ʏᴇᴀʀs.

Calculation :-

ᴛʜᴇ ᴅɪғғᴇʀᴇɴᴄᴇ ʙᴇᴛᴡᴇᴇɴ ʙᴏᴛʜ ᴛʜᴇ ᴀᴍᴏᴜɴᴛ ᴡɪʟʟ ʙᴇ ɪɴᴛᴇʀᴇsᴛ.

Sᴏ, 10920–8400 = 2520 (ɪɴᴛᴇʀᴇsᴛ)

ғᴏʀᴍᴜʟᴀ ғᴏʀ ᴛʜᴇ sɪᴍᴘʟᴇ ɪɴᴛᴇʀᴇsᴛ ɪs:-

sɪᴍᴘʟᴇ ɪɴᴛᴇʀᴇsᴛ = ᴘʀɪɴᴄɪᴘᴀʟ * ʀᴀᴛᴇ * ᴛɪᴍᴇ

ᴘᴜᴛ ᴛʜᴇ ᴠᴀʟᴜᴇ ɪɴ ᴛʜᴇ ғᴏʀᴍᴜʟᴀ.

2520= 8400 × 7.5/100 × ᴛɪᴍᴇ

2520×100=63000 × ᴛɪᴍᴇ

ᴛɪᴍᴇ = 4 ʏᴇᴀʀs.