Question

A farmer borrowed Rs 5,300 at 8% interest per annum. At the end of 2 1/2 years, he cleared his account by paying Rs 4,600 and a watch. Find the cost of watch.

Answer 1

Answer:

Principal = 5300

Rate = 8%

Time = 5/2 = 2.5 years

S.I.=

= \frac{p \times r \times t}{100} \\ = \frac{5300 \times 8 \times 2.5}{100} \\ = 53 \times 8 \times 2.5 \\ = 53 \times 20 \\ = 1060 \\

Amount = 5300 + 1060

=6360

Amount Paid= 4600

Price of watch= 6360-4600

=1760