Question

A farmer borrowed ₹5,300 at 8% interest per annum. At the end of 2 whole 1/2 years,he cleared his account by paying ₹4,600 and a watch. Find the cost of watch? pls solve this with full process​

Answer 1

Answer:

Let,

The borrowed money be the Principal (P)

Principal (P) = Rs 5300

Rate of Interest (R) = 8% per annum

Time (T) =  years

The farmer cleared his account by paying rs 4600 and a watch

Let the cost of  the watch be Rs x

So,

S.I = Rs 1060

Now,

The farmer payed (Rs 4600 + Rs x) = Amount

And

Amount = S.I + Principal

Amount = Rs 1060 + Rs 5300

Amount = Rs 6370

So,

⇒ (Rs 4600 + Rs x) = Rs 6370

⇒ Rs x = Rs 6370 - Rs 4600

⇒ Rs x = Rs 1760

Hence,

The cost of  the watch (Rs x) = Rs 1760