Question

A farmer borrowed Rs. 5300 at 8% interest per annum .At the end of 5/2 years he cleared his account by paying Rs 4600 and a watch . Find the cost of watch.

Answer 1

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

Answer 2

SOLUTION :-

Let,

The borrowed money be the Principal (P)

Principal (P) = Rs 5300

Rate of Interest (R) = 8% per annum

Time (T) = $\frac{5}{2}$ years

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

Let the cost of  the watch be Rs x

$S.I = \frac{P\times T \times R}{100} \\ \\S.I = \frac{5300 \times \frac{5}{2} \times 8 }{100} \\ \\S.I = 1060$

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