Question

A farmer borrowed rs 5300 at 8% interest for annum. at the end of 5/2 years he cleared his amount by paying rs 4600 and a watch . find the cost of watch

Answer 1

Principle=5300
Rate=8%per annum
Time=5/2 years
S.I.=P×R×T/100
= 5300×8×5/100×2
=1060
AMOUNT=5300+1060=6360
Given that he paid rs 4600 and a watch
4600+price of watch=6360
Let price of watch be x
4600+x=6360
x=6360-4600
x=1760
Therefore cost of watch=1760rs